Hess Midstream Partners LP (HESM)vsKinder Morgan Inc (KMI)
HESM
Hess Midstream Partners LP
$38.78
-1.00%
ENERGY · Cap: $8.16B
KMI
Kinder Morgan Inc
$31.27
+0.32%
ENERGY · Cap: $68.66B
Smart Verdict
WallStSmart Research — data-driven comparison
Kinder Morgan Inc generates 1013% more annual revenue ($17.96B vs $1.61B). HESM leads profitability with a 23.2% profit margin vs 19.3%. HESM appears more attractively valued with a PEG of 1.57. KMI earns a higher WallStSmart Score of 68/100 (B-).
HESM
Buy58
out of 100
Grade: C
KMI
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-15.4%
Fair Value
$31.55
Current Price
$38.78
$7.23 premium
Margin of Safety
-41.1%
Fair Value
$22.56
Current Price
$31.27
$8.71 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 71 in profit
Strong operational efficiency at 63.5%
Keeps 23 of every $100 in revenue as profit
Attractively priced relative to earnings
Strong operational efficiency at 30.1%
Large-cap with strong market position
Reasonable price relative to book value
Earnings expanding 21.2% YoY
Areas to Watch
Expensive relative to growth rate
Trading at 9.7x book value
1.4% earnings growth
Revenue declined 3.7%
Elevated debt levels
Expensive relative to growth rate
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : HESM
The strongest argument for HESM centers on Return on Equity, Operating Margin, Profit Margin. Profitability is solid with margins at 23.2% and operating margin at 63.5%.
Bull Case : KMI
The strongest argument for KMI centers on Operating Margin, Market Cap, Price/Book. Profitability is solid with margins at 19.3% and operating margin at 30.1%. Revenue growth of 10.8% demonstrates continued momentum.
Bear Case : HESM
The primary concerns for HESM are PEG Ratio, Price/Book, EPS Growth. Debt-to-equity of 7.15 is elevated, increasing financial risk.
Bear Case : KMI
The primary concerns for KMI are Debt/Equity, PEG Ratio, Altman Z-Score.
Key Dynamics to Monitor
HESM profiles as a declining stock while KMI is a mature play — different risk/reward profiles.
KMI carries more volatility with a beta of 0.55 — expect wider price swings.
KMI is growing revenue faster at 10.8% — sustainability is the question.
KMI generates stronger free cash flow (978M), providing more financial flexibility.
Bottom Line
KMI scores higher overall (68/100 vs 58/100), backed by strong 19.3% margins and 10.8% revenue growth. Both earn "Strong 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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