WallStSmart

Kinder Morgan Inc (KMI)vsWestern Midstream Partners LP (WES)

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Smart Verdict

WallStSmart Research — data-driven comparison

Kinder Morgan Inc generates 315% more annual revenue ($17.96B vs $4.33B). WES leads profitability with a 29.0% profit margin vs 19.3%. KMI appears more attractively valued with a PEG of 3.25. WES earns a higher WallStSmart Score of 69/100 (B-).

KMI

Strong Buy

68

out of 100

Grade: B-

Growth: 5.3Profit: 7.5Value: 3.3Quality: 3.5
Piotroski: 5/9Altman Z: 0.70

WES

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 9.0Value: 5.3Quality: 3.3
Piotroski: 2/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KMISignificantly Overvalued (-36.9%)

Margin of Safety

-36.9%

Fair Value

$22.54

Current Price

$30.86

$8.32 premium

UndervaluedFair: $22.54Overvalued
WESUndervalued (+1.4%)

Margin of Safety

+1.4%

Fair Value

$43.03

Current Price

$49.03

$6.00 discount

UndervaluedFair: $43.03Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KMI4 strengths · Avg: 8.8/10
Operating MarginProfitability
30.1%10/10

Strong operational efficiency at 30.1%

Market CapQuality
$68.66B9/10

Large-cap with strong market position

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

EPS GrowthGrowth
21.2%8/10

Earnings expanding 21.2% YoY

WES5 strengths · Avg: 9.2/10
Operating MarginProfitability
41.7%10/10

Strong operational efficiency at 41.7%

Revenue GrowthGrowth
30.0%10/10

Revenue surging 30.0% year-over-year

Return on EquityProfitability
29.7%9/10

Every $100 of equity generates 30 in profit

Profit MarginProfitability
29.0%9/10

Keeps 29 of every $100 in revenue as profit

P/E RatioValuation
15.6x8/10

Attractively priced relative to earnings

Areas to Watch

KMI3 concerns · Avg: 2.3/10
Debt/EquityHealth
1.023/10

Elevated debt levels

PEG RatioValuation
3.252/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.702/10

Distress zone — elevated risk

WES4 concerns · Avg: 2.0/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
5.482/10

Expensive relative to growth rate

Free Cash FlowQuality
$-216.94M2/10

Negative free cash flow — burning cash

Debt/EquityHealth
2.141/10

Elevated debt levels

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 19.3% and operating margin at 30.1%. Revenue growth of 10.8% demonstrates continued momentum.

Bull Case : WES

The strongest argument for WES centers on Operating Margin, Revenue Growth, Return on Equity. Profitability is solid with margins at 29.0% and operating margin at 41.7%. Revenue growth of 30.0% demonstrates continued momentum.

Bear Case : KMI

The primary concerns for KMI are Debt/Equity, PEG Ratio, Altman Z-Score.

Bear Case : WES

The primary concerns for WES are Piotroski F-Score, PEG Ratio, Free Cash Flow. Debt-to-equity of 2.14 is elevated, increasing financial risk.

Key Dynamics to Monitor

KMI profiles as a mature stock while WES is a growth play — different risk/reward profiles.

WES carries more volatility with a beta of 0.66 — expect wider price swings.

WES is growing revenue faster at 30.0% — sustainability is the question.

KMI generates stronger free cash flow (978M), providing more financial flexibility.

Bottom Line

WES scores higher overall (69/100 vs 68/100), backed by strong 29.0% margins and 30.0% revenue growth. Both earn "Strong Buy" and "Strong 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.

Western Midstream Partners LP

ENERGY · OIL & GAS MIDSTREAM · USA

Western Midstream Partners, LP, acquires, owns, develops and operates midstream assets primarily in the United States.

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