WallStSmart

Hess Midstream Partners LP (HESM)vsTC Energy Corp (TRP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TC Energy Corp generates 872% more annual revenue ($15.69B vs $1.61B). HESM leads profitability with a 23.2% profit margin vs 22.9%. HESM appears more attractively valued with a PEG of 1.57. TRP earns a higher WallStSmart Score of 63/100 (C+).

HESM

Buy

58

out of 100

Grade: C

Growth: 4.0Profit: 9.0Value: 4.7Quality: 3.8
Piotroski: 5/9

TRP

Buy

63

out of 100

Grade: C+

Growth: 6.7Profit: 7.5Value: 3.3Quality: 3.0
Piotroski: 4/9Altman Z: 0.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HESMSignificantly Overvalued (-15.4%)

Margin of Safety

-15.4%

Fair Value

$31.55

Current Price

$38.78

$7.23 premium

UndervaluedFair: $31.55Overvalued
TRPSignificantly Overvalued (-44.2%)

Margin of Safety

-44.2%

Fair Value

$42.26

Current Price

$59.78

$17.52 premium

UndervaluedFair: $42.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HESM4 strengths · Avg: 9.3/10
Return on EquityProfitability
71.2%10/10

Every $100 of equity generates 71 in profit

Operating MarginProfitability
63.5%10/10

Strong operational efficiency at 63.5%

Profit MarginProfitability
23.2%9/10

Keeps 23 of every $100 in revenue as profit

P/E RatioValuation
13.7x8/10

Attractively priced relative to earnings

TRP4 strengths · Avg: 9.0/10
Operating MarginProfitability
44.3%10/10

Strong operational efficiency at 44.3%

Market CapQuality
$64.22B9/10

Large-cap with strong market position

Profit MarginProfitability
22.9%9/10

Keeps 23 of every $100 in revenue as profit

Free Cash FlowQuality
$1.33B8/10

Generating 1.3B in free cash flow

Areas to Watch

HESM4 concerns · Avg: 3.5/10
PEG RatioValuation
1.574/10

Expensive relative to growth rate

Price/BookValuation
9.7x4/10

Trading at 9.7x book value

EPS GrowthGrowth
1.4%4/10

1.4% earnings growth

Revenue GrowthGrowth
-3.7%2/10

Revenue declined 3.7%

TRP3 concerns · Avg: 1.7/10
PEG RatioValuation
2.972/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.542/10

Distress zone — elevated risk

Debt/EquityHealth
2.301/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull 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 : TRP

The strongest argument for TRP centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 22.9% and operating margin at 44.3%.

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 : TRP

The primary concerns for TRP are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.30 is elevated, increasing financial risk.

Key Dynamics to Monitor

HESM profiles as a declining stock while TRP is a mature play — different risk/reward profiles.

TRP carries more volatility with a beta of 0.95 — expect wider price swings.

TRP is growing revenue faster at 5.7% — sustainability is the question.

TRP generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

TRP scores higher overall (63/100 vs 58/100), backed by strong 22.9% margins. 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.

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TC Energy Corp

ENERGY · OIL & GAS MIDSTREAM · USA

TC Energy Corporation is an energy infrastructure company in North America. The company is headquartered in Calgary, Canada.

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