Kinder Morgan Inc (KMI)vsPlains GP Holdings LP (PAGP)
KMI
Kinder Morgan Inc
$33.98
+0.15%
ENERGY · Cap: $75.49B
PAGP
Plains GP Holdings LP
$24.07
-0.29%
ENERGY · Cap: $5.63B
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
Buy64
out of 100
Grade: C+
PAGP
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
+41.2%
Fair Value
$36.04
Current Price
$24.07
$11.97 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
Growing faster than its price suggests
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
1.5% earnings growth
0.6% margin — thin
Operating margin of 3.5%
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 : 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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