Head to Head Analysis: Targa Resources (TRGP) & Its Rivals
Targa Resources (NYSE: TRGP) is one of 53 publicly-traded companies in the “Oil & Gas Transportation Services” industry, but how does it contrast to its rivals? We will compare Targa Resources to similar businesses based on the strength of its profitability, risk, valuation, analyst recommendations, dividends, institutional ownership and earnings.
Valuation & Earnings
This table compares Targa Resources and its rivals revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Targa Resources||$7.65 billion||$1.02 billion||-24.09|
|Targa Resources Competitors||$5.63 billion||$1.30 billion||37.91|
Targa Resources has higher revenue, but lower earnings than its rivals. Targa Resources is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Volatility and Risk
Targa Resources has a beta of 2.22, meaning that its stock price is 122% more volatile than the S&P 500. Comparatively, Targa Resources’ rivals have a beta of 1.39, meaning that their average stock price is 39% more volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Targa Resources and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Targa Resources Competitors||380||2061||2463||109||2.46|
Targa Resources presently has a consensus price target of $54.31, indicating a potential upside of 13.86%. As a group, “Oil & Gas Transportation Services” companies have a potential upside of 18.63%. Given Targa Resources’ rivals higher probable upside, analysts plainly believe Targa Resources has less favorable growth aspects than its rivals.
Targa Resources pays an annual dividend of $3.64 per share and has a dividend yield of 7.6%. Targa Resources pays out -183.8% of its earnings in the form of a dividend. As a group, “Oil & Gas Transportation Services” companies pay a dividend yield of 6.5% and pay out 172.5% of their earnings in the form of a dividend. Targa Resources has raised its dividend for 6 consecutive years. Targa Resources is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
87.9% of Targa Resources shares are owned by institutional investors. Comparatively, 57.4% of shares of all “Oil & Gas Transportation Services” companies are owned by institutional investors. 1.9% of Targa Resources shares are owned by company insiders. Comparatively, 9.2% of shares of all “Oil & Gas Transportation Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Targa Resources and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Targa Resources Competitors||16.87%||14.36%||5.47%|
Targa Resources beats its rivals on 8 of the 14 factors compared.
About Targa Resources
Targa Resources Corp. is a midstream energy company in North America. It provides midstream services. Its segments include Gathering and Processing, and Logistics and Marketing (Downstream Business). It is engaged in the business of gathering, compressing, treating, processing and selling natural gas; storing, fractionating, treating, transporting and selling natural gas liquids (NGLs) and NGL products, including services to liquefied petroleum gas exporters; gathering, storing and terminalling crude oil, and storing, terminalling and selling refined petroleum products. The Gathering and Processing segment consists of gathering, compressing, dehydrating, treating, conditioning, processing, and marketing natural gas and gathering crude oil. The Logistics and Marketing segment includes all the activities necessary to convert mixed NGLs into NGL products and provides certain services, such as storing, fractionating, terminalling, transporting and marketing of NGLs and NGL products.
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