Kinder Morgan Inc (KMI)vsPlains All American Pipeline LP (PAA)
KMI
Kinder Morgan Inc
$33.98
+0.15%
ENERGY · Cap: $75.49B
PAA
Plains All American Pipeline LP
$22.15
-0.32%
ENERGY · Cap: $15.68B
Smart Verdict
WallStSmart Research — data-driven comparison
Plains All American Pipeline LP generates 161% more annual revenue ($44.26B vs $16.94B). KMI leads profitability with a 18.0% profit margin vs 3.2%. PAA appears more attractively valued with a PEG of 2.35. KMI earns a higher WallStSmart Score of 64/100 (C+).
KMI
Buy64
out of 100
Grade: C+
PAA
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+51.0%
Fair Value
$64.12
Current Price
$33.98
$30.14 discount
Margin of Safety
+62.3%
Fair Value
$52.42
Current Price
$22.15
$30.27 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Earnings expanding 145.8% YoY
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Expensive relative to growth rate
3.2% margin — thin
Operating margin of 3.5%
Revenue declined 12.2%
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : PAA
The strongest argument for PAA centers on EPS Growth, Price/Book.
Bear Case : KMI
The primary concerns for KMI are PEG Ratio.
Bear Case : PAA
The primary concerns for PAA are PEG Ratio, Profit Margin, Operating Margin. Thin 3.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
KMI profiles as a mature stock while PAA is a value 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 56/100), backed by strong 18.0% margins and 13.1% revenue growth. PAA offers better value entry with a 62.3% 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.
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.
Plains All American Pipeline LP
ENERGY · OIL & GAS MIDSTREAM · USA
Plains All American Pipeline, LP, is engaged in the transportation, completion, storage and collection of crude oil and natural gas liquids (NGL) through pipelines in the United States and Canada. The company is headquartered in Houston, Texas.
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