Reviewing Targa Resources (NYSE:TRGP) & Uranium Royalty (NASDAQ:UROY)

Targa Resources (NYSE:TRGPGet Free Report) and Uranium Royalty (NASDAQ:UROYGet Free Report) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.

Earnings and Valuation

This table compares Targa Resources and Uranium Royalty”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Targa Resources $16.74 billion 3.72 $1.84 billion $10.46 27.74
Uranium Royalty $186.95 million 9.05 $40.25 million $0.02 222.00

Targa Resources has higher revenue and earnings than Uranium Royalty. Targa Resources is trading at a lower price-to-earnings ratio than Uranium Royalty, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Targa Resources and Uranium Royalty, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Targa Resources 0 1 17 1 3.00
Uranium Royalty 0 1 3 1 3.00

Targa Resources presently has a consensus target price of $301.18, indicating a potential upside of 3.78%. Uranium Royalty has a consensus target price of $4.12, indicating a potential downside of 7.09%. Given Targa Resources’ higher possible upside, research analysts plainly believe Targa Resources is more favorable than Uranium Royalty.

Profitability

This table compares Targa Resources and Uranium Royalty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Targa Resources 13.55% 69.26% 8.64%
Uranium Royalty 21.11% 14.24% 13.42%

Institutional & Insider Ownership

92.1% of Targa Resources shares are owned by institutional investors. Comparatively, 24.2% of Uranium Royalty shares are owned by institutional investors. 1.4% of Targa Resources shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Targa Resources has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, Uranium Royalty has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.

Summary

Targa Resources beats Uranium Royalty on 8 of the 13 factors compared between the two stocks.

About Targa Resources

(Get Free Report)

Targa Resources Corp., together with its subsidiary, Targa Resources Partners LP, owns, operates, acquires, and develops a portfolio of complementary domestic midstream infrastructure assets in North America. It operates in two segments, Gathering and Processing, and Logistics and Transportation. The company is involved in gathering, compressing, treating, processing, transporting, and selling natural gas; storing, fractionating, treating, transporting, and selling natural gas liquids (NGL) and NGL products, including services to liquefied petroleum gas exporters; and gathering, storing, terminaling, purchasing, and selling crude oil. It is also involved in the purchase and resale of NGL products; and sale of propane, as well as provision of related logistics services to multi-state retailers, independent retailers, and other end-users. In addition, the company offers NGL balancing services; and transportation services to refineries and petrochemical companies in the Gulf Coast area, as well as purchases, markets, and resells natural gas. As of December 31, 2023, it leased and managed approximately 605 railcars; 137 tractors; and 6 vacuum trucks and 2 pressurized NGL barges. Targa Resources Corp. was incorporated in 2005 and is headquartered in Houston, Texas.

About Uranium Royalty

(Get Free Report)

Uranium Royalty Corp. operates as a pure-play uranium royalty company. It acquires, accumulates, and manages a portfolio of geographically diversified uranium interests. The company has royalty interests in the McArthur River, Cigar Lake / Waterbury Lake, Roughrider, Russell Lake, Russell Lake south, and Dawn Lake projects in Saskatchewan, Canada; Anderson and San Rafael projects in Arizona; Lance and Reno Creek projects in Wyoming; Church Rock and Roca Honda projects in New Mexico; Dewey-Burdock project in South Dakota; Slick Rock project in Colorado; Langer Heinrich project in Namibia; and Michelin project in Newfoundland and Labrador, Canada; Energy Queen and Whirlwind project in Utah; and Workman Creek projects in Arizona. Uranium Royalty Corp. was incorporated in 2017 and is headquartered in Vancouver, Canada.

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