TRGP vs. WMB, KMI, LNG, FRO, STNG, GOGL, GLNG, TNK, SFL, and TK
Should you be buying Targa Resources stock or one of its competitors? The main competitors of Targa Resources include Williams Companies (WMB), Kinder Morgan (KMI), Cheniere Energy (LNG), Frontline (FRO), Scorpio Tankers (STNG), Golden Ocean Group (GOGL), Golar LNG (GLNG), Teekay Tankers (TNK), SFL (SFL), and Teekay (TK). These companies are all part of the "oil & gas storage & transportation" industry.
Williams Companies (NYSE:WMB) and Targa Resources (NYSE:TRGP) are both large-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, media sentiment, profitability, earnings, community ranking, institutional ownership and dividends.
Targa Resources received 63 more outperform votes than Williams Companies when rated by MarketBeat users. However, 72.56% of users gave Williams Companies an outperform vote while only 68.97% of users gave Targa Resources an outperform vote.
Williams Companies pays an annual dividend of $1.90 per share and has a dividend yield of 4.6%. Targa Resources pays an annual dividend of $3.00 per share and has a dividend yield of 2.5%. Williams Companies pays out 79.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Targa Resources pays out 61.7% of its earnings in the form of a dividend. Williams Companies has increased its dividend for 8 consecutive years and Targa Resources has increased its dividend for 4 consecutive years. Williams Companies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Williams Companies has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Targa Resources has a beta of 2.19, suggesting that its stock price is 119% more volatile than the S&P 500.
Williams Companies currently has a consensus target price of $39.73, indicating a potential downside of 4.29%. Targa Resources has a consensus target price of $121.50, indicating a potential upside of 2.77%. Given Williams Companies' stronger consensus rating and higher possible upside, analysts clearly believe Targa Resources is more favorable than Williams Companies.
Williams Companies has a net margin of 27.29% compared to Williams Companies' net margin of 6.86%. Williams Companies' return on equity of 24.41% beat Targa Resources' return on equity.
86.4% of Williams Companies shares are owned by institutional investors. Comparatively, 92.1% of Targa Resources shares are owned by institutional investors. 0.4% of Williams Companies shares are owned by insiders. Comparatively, 1.4% of Targa Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Williams Companies has higher earnings, but lower revenue than Targa Resources. Williams Companies is trading at a lower price-to-earnings ratio than Targa Resources, indicating that it is currently the more affordable of the two stocks.
In the previous week, Targa Resources had 1 more articles in the media than Williams Companies. MarketBeat recorded 8 mentions for Targa Resources and 7 mentions for Williams Companies. Williams Companies' average media sentiment score of 1.20 beat Targa Resources' score of 0.92 indicating that Targa Resources is being referred to more favorably in the news media.
Summary
Targa Resources beats Williams Companies on 15 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding TRGP and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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