Targa Resources (TRGP) vs. The Competition Head to Head Analysis

Targa Resources (NYSE:TRGP) is one of 1,051 public companies in the “Oil, Gas & Consumable Fuels” industry, but how does it compare to its competitors? We will compare Targa Resources to similar companies based on the strength of its earnings, analyst recommendations, institutional ownership, profitability, dividends, risk and valuation.

Insider and Institutional Ownership

92.1% of Targa Resources shares are owned by institutional investors. Comparatively, 30.8% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by institutional investors. 1.4% of Targa Resources shares are owned by company insiders. Comparatively, 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Targa Resources and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Targa Resources	13.45%	68.83%	8.86%
Targa Resources Competitors	-455.77%	19.32%	6.65%

Dividends

Targa Resources pays an annual dividend of $5.00 per share and has a dividend yield of 1.7%. Targa Resources pays out 44.2% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 9.0% and pay out -125.2% of their earnings in the form of a dividend. Targa Resources has increased its dividend for 5 consecutive years. Targa Resources lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk & Volatility

Targa Resources has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Targa Resources’ competitors have a beta of -3.75, indicating that their average share price is 475% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Targa Resources and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Targa Resources	0	0	20	2	3.09
Targa Resources Competitors	5998	27048	40916	2431	2.52

Targa Resources currently has a consensus price target of $326.37, suggesting a potential upside of 12.02%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 27.53%. Given Targa Resources’ competitors higher probable upside, analysts clearly believe Targa Resources has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares Targa Resources and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Targa Resources	$17.03 billion	$1.84 billion	25.78
Targa Resources Competitors	$11.74 billion	$5.51 billion	-1.25

Targa Resources has higher revenue, but lower earnings than its competitors. Targa Resources is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Targa Resources beats its competitors on 10 of the 15 factors compared.

About Targa Resources

Targa Resources Corp. is a midstream energy company that gathers, processes, transports and stores natural gas and natural gas liquids (NGLs), and provides services for crude oil. Its infrastructure connects oil and gas producers with pipelines, processing facilities, fractionators, storage sites and domestic and international markets. The company’s services include natural gas gathering, compression and processing; NGL transportation and fractionation; and crude oil gathering and terminaling. Targa also operates facilities that support the export of NGLs and liquefied petroleum gas products.