Targa Resources (TRGP) & Its Competitors Head to Head Survey

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

Valuation & Earnings

This table compares Targa Resources and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Targa Resources	$17.03 billion	$1.84 billion	25.30
Targa Resources Competitors	$10.86 billion	$5.51 billion	-0.83

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Targa Resources and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Targa Resources	0	0	20	2	3.09
Targa Resources Competitors	5981	26987	40848	2421	2.52

Targa Resources currently has a consensus price target of $325.58, suggesting a potential upside of 23.02%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 29.03%. Given Targa Resources’ peers higher probable upside, analysts clearly believe Targa Resources has less favorable growth aspects than its peers.

Dividends

Targa Resources pays an annual dividend of $5.00 per share and has a dividend yield of 1.9%. Targa Resources pays out 47.8% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 9.2% and pay out -131.6% of their earnings in the form of a dividend. Targa Resources has raised its dividend for 5 consecutive years. Targa Resources lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional & Insider Ownership

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

Risk and Volatility

Targa Resources has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Targa Resources’ peers have a beta of -3.65, indicating that their average stock price is 465% less volatile than the S&P 500.

Profitability

This table compares Targa Resources and its peers’ 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%
Targa Resources Competitors	-457.98%	19.26%	6.33%

Summary

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

About Targa Resources

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.