Targa Resources vs Williams Companies
TRGP and WMB side by side, both in gas production and distribution. Figures are trailing twelve months unless noted, from SEC filings and end-of-day prices.
How TRGP and WMB compare
Williams Companies is the larger company, worth 1.3 times as much as Targa Resources ($84.5B against $63.8B).
On earnings, Targa Resources is cheaper: it trades at 26.3× trailing earnings, against 27.5× for Williams Companies.
Williams Companies grew revenue faster over the last twelve months (8.7% versus 4.7% for Targa Resources).
Williams Companies keeps more of each dollar of sales as profit, with a net margin of 25.2% compared with 13.5% at Targa Resources.
Both pay dividends: Targa Resources yields 1.2% and Williams Companies 3.0%.
Targa Resources scores higher on the StockData Score (10 against 8 for Williams Companies), which adds up 30 checks on valuation, growth, past performance, financial health and dividends.
Key numbers
A dot marks the better figure where higher or lower is clearly better.
| Metric | TRGP | WMB |
|---|---|---|
| Size and price | ||
| Market cap | $63.8B | $84.5B |
| Share price | $297.33 | $69.09 |
| Change, 1 year | 74.3% | 14.3% |
| Change, 5 years | 455% | 152% |
| Beta (5Y) | 0.66 | 0.56 |
| Employees | 3,570 | 5,987 |
| StockData Score | ||
| Total score | 10 (better) | 8 |
| Valuation score | 1 (better) | 0 |
| Growth score | 2 (better) | 1 |
| Performance score | 5 | 5 |
| Health score | 1 (better) | 0 |
| Dividend score | 1 | 2 (better) |
| Valuation | ||
| P/E | 26.3× (better) | 27.5× |
| P/S | 3.5× (better) | 6.9× |
| P/B | 16.7× | 6.4× (better) |
| EV/EBITDA | 14.3× (better) | 16.8× |
| P/FCF | 68.3× | – |
| PEG | 0.88 (better) | 3.19 |
| FCF yield | 1.5% (better) | −0.13% |
| Fair value | $230.35 | $48.72 |
| Margin of safety | −29.1% (better) | −41.8% |
| Growth | ||
| Revenue growth (TTM) | 4.7% | 8.7% (better) |
| Revenue growth, 5Y average | 15.6% (better) | 9.1% |
| Net income growth (TTM) | 41.5% (better) | 26.5% |
| EPS growth (TTM) | 52.4% (better) | 26.1% |
| EPS growth, 5Y average | – | 66.0% |
| Profitability | ||
| Gross margin | 41.8% | – |
| Operating margin | 22.5% | 38.2% (better) |
| Net margin | 13.5% | 25.2% (better) |
| FCF margin | 5.1% (better) | −0.88% |
| Return on equity | 75.0% (better) | 24.0% |
| Return on invested capital | 15.3% (better) | 8.5% |
| Financial health | ||
| Debt / equity | 5.05 | 2.33 (better) |
| Net debt / EBITDA | 3.29 (better) | 4.37 |
| Interest coverage | – | 3.1× |
| Current ratio | 0.74 (better) | 0.48 |
| Altman Z-score | 2.69 (better) | 1.23 |
| Piotroski F-score | 6 | 6 |
| Dividends and buybacks | ||
| Dividend yield | 1.2% | 3.0% (better) |
| Payout ratio | – | 81.5% |
| Years of dividend growth | 4 | 8 (better) |
| Dividend growth, 5Y average | 25.4% (better) | 4.6% |
| Buyback yield | 0.35% (better) | −0.01% |
| Shareholder yield | 1.5% | 3.0% (better) |
| Ownership | ||
| Held by institutions | 95.1% | 89.8% |
| Held by insiders | 1.3% | 0.49% |
| Insider net buying, 12 months | −$30.8M | −$11.0M (better) |
| Superinvestors holding | 1 | – |
| Short interest, % of float | 3.1% | 2.4% |
Go deeper
- TRGP stock overview
- TRGP income statement
- TRGP valuation and score
- WMB stock overview
- WMB income statement
- WMB valuation and score
Other comparisons
For information only, not investment advice. Check the source filings before relying on any figure.