Hess Midstream Partners LP (HESM)vsKinder Morgan Inc (KMI)
HESM
Hess Midstream Partners LP
$39.75
-1.02%
ENERGY · Cap: $8.37B
KMI
Kinder Morgan Inc
$33.98
+0.15%
ENERGY · Cap: $75.49B
Smart Verdict
WallStSmart Research — data-driven comparison
Kinder Morgan Inc generates 945% more annual revenue ($16.94B vs $1.62B). HESM leads profitability with a 21.8% profit margin vs 18.0%. HESM appears more attractively valued with a PEG of 1.57. KMI earns a higher WallStSmart Score of 64/100 (C+).
HESM
Buy62
out of 100
Grade: C+
KMI
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+40.9%
Fair Value
$61.55
Current Price
$39.75
$21.80 discount
Margin of Safety
+51.0%
Fair Value
$64.12
Current Price
$33.98
$30.14 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 62.3%
Keeps 22 of every $100 in revenue as profit
Attractively priced relative to earnings
Strong operational efficiency at 30.3%
Large-cap with strong market position
Reasonable price relative to book value
Earnings expanding 49.3% YoY
Generating 1.6B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 9.1x book value
2.1% revenue growth
ROE of 1.5% — below average capital efficiency
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : HESM
The strongest argument for HESM centers on Operating Margin, Profit Margin, P/E Ratio. Profitability is solid with margins at 21.8% and operating margin at 62.3%.
Bull Case : KMI
The strongest argument for KMI centers on Operating Margin, Market Cap, Price/Book. Profitability is solid with margins at 18.0% and operating margin at 30.3%. Revenue growth of 13.1% demonstrates continued momentum.
Bear Case : HESM
The primary concerns for HESM are PEG Ratio, Price/Book, Revenue Growth.
Bear Case : KMI
The primary concerns for KMI are PEG Ratio.
Key Dynamics to Monitor
HESM profiles as a value stock while KMI is a mature play — different risk/reward profiles.
KMI carries more volatility with a beta of 0.65 — expect wider price swings.
KMI is growing revenue faster at 13.1% — sustainability is the question.
KMI generates stronger free cash flow (1.6B), providing more financial flexibility.
Bottom Line
KMI scores higher overall (64/100 vs 62/100), backed by strong 18.0% margins and 13.1% revenue growth. HESM offers better value entry with a 40.9% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Hess Midstream Partners LP
ENERGY · OIL & GAS MIDSTREAM · USA
Hess Midstream LP owns, develops, operates and acquires midstream assets. The company is headquartered in Houston, Texas.
Visit Website →Kinder Morgan Inc
ENERGY · OIL & GAS MIDSTREAM · USA
Kinder Morgan, Inc. is one of the largest energy infrastructure companies in North America. The company specializes in owning and controlling oil and gas pipelines and terminals.
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