WallStSmart

Kinder Morgan Inc (KMI)vsPermian Basin Royalty Trust (PBT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Kinder Morgan Inc generates 97992% more annual revenue ($16.94B vs $17.27M). PBT leads profitability with a 88.5% profit margin vs 18.0%. PBT appears more attractively valued with a PEG of 1.12. 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

PBT

Buy

51

out of 100

Grade: C-

Growth: 4.7Profit: 8.5Value: 4.7Quality: 5.0
Piotroski: 5/9
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
PBTSignificantly Overvalued (-755.4%)

Margin of Safety

-755.4%

Fair Value

$2.24

Current Price

$22.02

$19.78 premium

UndervaluedFair: $2.24Overvalued

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

PBT3 strengths · Avg: 10.0/10
Return on EquityProfitability
87.8%10/10

Every $100 of equity generates 88 in profit

Profit MarginProfitability
88.5%10/10

Keeps 89 of every $100 in revenue as profit

Operating MarginProfitability
94.3%10/10

Strong operational efficiency at 94.3%

Areas to Watch

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

Expensive relative to growth rate

PBT4 concerns · Avg: 2.3/10
Market CapQuality
$979.25M3/10

Smaller company, higher risk/reward

P/E RatioValuation
63.7x2/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
-13.6%2/10

Revenue declined 13.6%

EPS GrowthGrowth
-14.8%2/10

Earnings declined 14.8%

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 : PBT

The strongest argument for PBT centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 88.5% and operating margin at 94.3%. PEG of 1.12 suggests the stock is reasonably priced for its growth.

Bear Case : KMI

The primary concerns for KMI are PEG Ratio.

Bear Case : PBT

The primary concerns for PBT are Market Cap, P/E Ratio, Revenue Growth. A P/E of 63.7x leaves little room for execution misses.

Key Dynamics to Monitor

KMI profiles as a mature stock while PBT is a declining 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 51/100), backed by strong 18.0% margins and 13.1% revenue growth. 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.

Permian Basin Royalty Trust

ENERGY · OIL & GAS MIDSTREAM · USA

The Permian Basin Royalty Trust, an express trust, holds primary royalty interests in various oil and gas properties in the United States. The company is headquartered in Dallas, Texas.

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