Hess Midstream Partners LP (HESM)vsTarga Resources Inc (TRGP)
HESM
Hess Midstream Partners LP
$29.96
-1.12%
ENERGY · Cap: $6.54B
TRGP
Targa Resources Inc
$264.59
-2.66%
ENERGY · Cap: $67.54B
Smart Verdict
WallStSmart Research — data-driven comparison
Targa Resources Inc generates 937% more annual revenue ($16.74B vs $1.61B). HESM leads profitability with a 23.2% profit margin vs 13.6%. TRGP appears more attractively valued with a PEG of 1.23. TRGP earns a higher WallStSmart Score of 64/100 (C+).
HESM
Buy58
out of 100
Grade: C
TRGP
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-14.8%
Fair Value
$31.72
Current Price
$29.96
$1.76 premium
Intrinsic value data unavailable for TRGP.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 71 in profit
Strong operational efficiency at 63.5%
Keeps 23 of every $100 in revenue as profit
Every $100 of equity generates 62 in profit
Large-cap with strong market position
Strong operational efficiency at 27.8%
Earnings expanding 23.3% YoY
Areas to Watch
Expensive relative to growth rate
1.4% earnings growth
Revenue declined 3.7%
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 15.5x book value
4.2% revenue growth
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : HESM
The strongest argument for HESM centers on P/E Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 23.2% and operating margin at 63.5%.
Bull Case : TRGP
The strongest argument for TRGP centers on Return on Equity, Market Cap, Operating Margin. PEG of 1.23 suggests the stock is reasonably priced for its growth.
Bear Case : HESM
The primary concerns for HESM are PEG Ratio, EPS Growth, Revenue Growth. Debt-to-equity of 7.15 is elevated, increasing financial risk.
Bear Case : TRGP
The primary concerns for TRGP are P/E Ratio, Price/Book, Revenue Growth. Debt-to-equity of 5.51 is elevated, increasing financial risk.
Key Dynamics to Monitor
HESM profiles as a declining stock while TRGP is a value play — different risk/reward profiles.
TRGP carries more volatility with a beta of 0.80 — expect wider price swings.
TRGP is growing revenue faster at 4.2% — sustainability is the question.
TRGP generates stronger free cash flow (431M), providing more financial flexibility.
Bottom Line
TRGP scores higher overall (64/100 vs 58/100). 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 →Targa Resources Inc
ENERGY · OIL & GAS MIDSTREAM · USA
Targa Resources Corp. The company is headquartered in Houston, Texas.
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