WallStSmart

Kinder Morgan Inc (KMI)vsSabine Royalty Trust (SBR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Kinder Morgan Inc generates 21745% more annual revenue ($16.94B vs $77.53M). SBR leads profitability with a 94.7% profit margin vs 18.0%. SBR appears more attractively valued with a PEG of 1.35. 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

SBR

Hold

50

out of 100

Grade: D+

Growth: 2.0Profit: 10.0Value: 7.3Quality: 6.0
Piotroski: 3/9
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
SBRSignificantly Overvalued (-107.3%)

Margin of Safety

-107.3%

Fair Value

$34.27

Current Price

$74.07

$39.80 premium

UndervaluedFair: $34.27Overvalued

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

SBR4 strengths · Avg: 9.5/10
Return on EquityProfitability
94.4%10/10

Every $100 of equity generates 94 in profit

Profit MarginProfitability
94.7%10/10

Keeps 95 of every $100 in revenue as profit

Operating MarginProfitability
96.7%10/10

Strong operational efficiency at 96.7%

P/E RatioValuation
14.7x8/10

Attractively priced relative to earnings

Areas to Watch

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

Expensive relative to growth rate

SBR4 concerns · Avg: 2.5/10
Market CapQuality
$1.08B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
157.6x2/10

Trading at 157.6x book value

Revenue GrowthGrowth
-30.2%2/10

Revenue declined 30.2%

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 : SBR

The strongest argument for SBR centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 94.7% and operating margin at 96.7%. PEG of 1.35 suggests the stock is reasonably priced for its growth.

Bear Case : KMI

The primary concerns for KMI are PEG Ratio.

Bear Case : SBR

The primary concerns for SBR are Market Cap, Piotroski F-Score, Price/Book.

Key Dynamics to Monitor

KMI profiles as a mature stock while SBR 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.

Monitor OIL & GAS MIDSTREAM industry trends, competitive dynamics, and regulatory changes.

Bottom Line

KMI scores higher overall (64/100 vs 50/100), backed by strong 18.0% margins and 13.1% revenue growth. Both earn "Buy" and "Hold" 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.

Sabine Royalty Trust

ENERGY · OIL & GAS MIDSTREAM · USA

Sabine Royalty Trust owns copyrights and mineral interests in several oil and gas producing properties in the United States. The company is headquartered in Dallas, Texas.

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