WallStSmart

Targa Resources Inc (TRGP)vsTC Energy Corp (TRP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Targa Resources Inc generates 7% more annual revenue ($16.74B vs $15.69B). TRP leads profitability with a 22.9% profit margin vs 13.6%. TRGP appears more attractively valued with a PEG of 1.23. TRGP earns a higher WallStSmart Score of 66/100 (B-).

TRGP

Strong Buy

66

out of 100

Grade: B-

Growth: 4.7Profit: 8.5Value: 5.7Quality: 3.5
Piotroski: 4/9Altman Z: 1.27

TRP

Buy

63

out of 100

Grade: C+

Growth: 6.7Profit: 7.5Value: 3.3Quality: 3.0
Piotroski: 4/9Altman Z: 0.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for TRGP.

TRPSignificantly Overvalued (-44.2%)

Margin of Safety

-44.2%

Fair Value

$42.26

Current Price

$61.54

$19.28 premium

UndervaluedFair: $42.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TRGP4 strengths · Avg: 8.8/10
Return on EquityProfitability
61.9%10/10

Every $100 of equity generates 62 in profit

Market CapQuality
$62.24B9/10

Large-cap with strong market position

Operating MarginProfitability
27.8%8/10

Strong operational efficiency at 27.8%

EPS GrowthGrowth
23.3%8/10

Earnings expanding 23.3% YoY

TRP4 strengths · Avg: 9.0/10
Operating MarginProfitability
44.3%10/10

Strong operational efficiency at 44.3%

Market CapQuality
$64.22B9/10

Large-cap with strong market position

Profit MarginProfitability
22.9%9/10

Keeps 23 of every $100 in revenue as profit

Free Cash FlowQuality
$1.33B8/10

Generating 1.3B in free cash flow

Areas to Watch

TRGP4 concerns · Avg: 3.5/10
P/E RatioValuation
27.9x4/10

Moderate valuation

Price/BookValuation
20.0x4/10

Trading at 20.0x book value

Revenue GrowthGrowth
4.2%4/10

4.2% revenue growth

Altman Z-ScoreHealth
1.272/10

Distress zone — elevated risk

TRP3 concerns · Avg: 1.7/10
PEG RatioValuation
2.972/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.542/10

Distress zone — elevated risk

Debt/EquityHealth
2.301/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : TRGP

The strongest argument for TRGP centers on Return on Equity, Market Cap, Operating Margin. PEG of 1.23 suggests the stock is reasonably priced for its growth.

Bull Case : TRP

The strongest argument for TRP centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 22.9% and operating margin at 44.3%.

Bear Case : TRGP

The primary concerns for TRGP are P/E Ratio, Price/Book, Revenue Growth. Debt-to-equity of 5.51 is elevated, increasing financial risk.

Bear Case : TRP

The primary concerns for TRP are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.30 is elevated, increasing financial risk.

Key Dynamics to Monitor

TRGP profiles as a value stock while TRP is a mature play — different risk/reward profiles.

TRP carries more volatility with a beta of 0.95 — expect wider price swings.

TRP is growing revenue faster at 5.7% — sustainability is the question.

TRP generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

TRGP scores higher overall (66/100 vs 63/100). Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Targa Resources Inc

ENERGY · OIL & GAS MIDSTREAM · USA

Targa Resources Corp. The company is headquartered in Houston, Texas.

TC Energy Corp

ENERGY · OIL & GAS MIDSTREAM · USA

TC Energy Corporation is an energy infrastructure company in North America. The company is headquartered in Calgary, Canada.

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