WallStSmart

Kinder Morgan Inc (KMI)vsPlains GP Holdings LP (PAGP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Plains GP Holdings LP generates 161% more annual revenue ($44.26B vs $16.94B). KMI leads profitability with a 18.0% profit margin vs 0.6%. PAGP appears more attractively valued with a PEG of 0.70. KMI earns a higher WallStSmart Score of 64/100 (C+).

KMI

Buy

64

out of 100

Grade: C+

Growth: 6.0Profit: 7.5Value: 7.3Quality: 4.5
Piotroski: 4/9

PAGP

Buy

56

out of 100

Grade: C

Growth: 2.7Profit: 4.5Value: 10.0Quality: 3.3
Piotroski: 2/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KMIUndervalued (+51.0%)

Margin of Safety

+51.0%

Fair Value

$64.12

Current Price

$33.98

$30.14 discount

UndervaluedFair: $64.12Overvalued
PAGPUndervalued (+41.2%)

Margin of Safety

+41.2%

Fair Value

$36.04

Current Price

$24.07

$11.97 discount

UndervaluedFair: $36.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KMI5 strengths · Avg: 8.6/10
Operating MarginProfitability
30.3%10/10

Strong operational efficiency at 30.3%

Market CapQuality
$75.49B9/10

Large-cap with strong market position

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

EPS GrowthGrowth
49.3%8/10

Earnings expanding 49.3% YoY

Free Cash FlowQuality
$1.58B8/10

Generating 1.6B in free cash flow

PAGP1 strengths · Avg: 8.0/10
PEG RatioValuation
0.708/10

Growing faster than its price suggests

Areas to Watch

KMI1 concerns · Avg: 2.0/10
PEG RatioValuation
3.862/10

Expensive relative to growth rate

PAGP4 concerns · Avg: 3.5/10
P/E RatioValuation
31.4x4/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
1.5%4/10

1.5% earnings growth

Profit MarginProfitability
0.6%3/10

0.6% margin — thin

Operating MarginProfitability
3.5%3/10

Operating margin of 3.5%

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : PAGP

The strongest argument for PAGP centers on PEG Ratio. PEG of 0.70 suggests the stock is reasonably priced for its growth.

Bear Case : KMI

The primary concerns for KMI are PEG Ratio.

Bear Case : PAGP

The primary concerns for PAGP are P/E Ratio, EPS Growth, Profit Margin. Debt-to-equity of 7.08 is elevated, increasing financial risk. Thin 0.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

KMI profiles as a mature stock while PAGP 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. PAGP offers better value entry with a 41.2% 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 GP Holdings LP

ENERGY · OIL & GAS MIDSTREAM · USA

Plains GP Holdings, LP owns and operates midstream power infrastructure in the United States and Canada. The company is headquartered in Houston, Texas.

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