WallStSmart

Targa Resources Inc (TRGP)vsWilliams Companies Inc (WMB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Targa Resources Inc generates 36% more annual revenue ($16.74B vs $12.32B). WMB leads profitability with a 24.9% profit margin vs 13.6%. TRGP appears more attractively valued with a PEG of 1.23. WMB earns a higher WallStSmart Score of 69/100 (B-).

TRGP

Strong Buy

66

out of 100

Grade: B-

Growth: 4.7Profit: 8.5Value: 5.7Quality: 3.5
Piotroski: 4/9Altman Z: 1.27

WMB

Strong Buy

69

out of 100

Grade: B-

Growth: 6.7Profit: 8.0Value: 5.0Quality: 3.0
Piotroski: 5/9Altman Z: 0.34

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TRGP4 strengths · Avg: 8.8/10
Return on EquityProfitability
61.9%10/10

Every $100 of equity generates 62 in profit

Market CapQuality
$62.24B9/10

Large-cap with strong market position

Operating MarginProfitability
27.8%8/10

Strong operational efficiency at 27.8%

EPS GrowthGrowth
23.3%8/10

Earnings expanding 23.3% YoY

WMB5 strengths · Avg: 9.4/10
Operating MarginProfitability
39.5%10/10

Strong operational efficiency at 39.5%

EPS GrowthGrowth
51.2%10/10

Earnings expanding 51.2% YoY

Market CapQuality
$89.11B9/10

Large-cap with strong market position

Return on EquityProfitability
23.3%9/10

Every $100 of equity generates 23 in profit

Profit MarginProfitability
24.9%9/10

Keeps 25 of every $100 in revenue as profit

Areas to Watch

TRGP4 concerns · Avg: 3.5/10
P/E RatioValuation
27.9x4/10

Moderate valuation

Price/BookValuation
20.0x4/10

Trading at 20.0x book value

Revenue GrowthGrowth
4.2%4/10

4.2% revenue growth

Altman Z-ScoreHealth
1.272/10

Distress zone — elevated risk

WMB4 concerns · Avg: 3.0/10
PEG RatioValuation
2.074/10

Expensive relative to growth rate

P/E RatioValuation
29.0x4/10

Moderate valuation

Free Cash FlowQuality
$-458.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.342/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : TRGP

The strongest argument for TRGP centers on Return on Equity, Market Cap, Operating Margin. PEG of 1.23 suggests the stock is reasonably priced for its growth.

Bull Case : WMB

The strongest argument for WMB centers on Operating Margin, EPS Growth, Market Cap. Profitability is solid with margins at 24.9% and operating margin at 39.5%.

Bear Case : TRGP

The primary concerns for TRGP are P/E Ratio, Price/Book, Revenue Growth. Debt-to-equity of 5.51 is elevated, increasing financial risk.

Bear Case : WMB

The primary concerns for WMB are PEG Ratio, P/E Ratio, Free Cash Flow. Debt-to-equity of 2.33 is elevated, increasing financial risk.

Key Dynamics to Monitor

TRGP profiles as a value stock while WMB is a mature play — different risk/reward profiles.

TRGP carries more volatility with a beta of 0.72 — expect wider price swings.

WMB is growing revenue faster at 7.8% — sustainability is the question.

TRGP generates stronger free cash flow (431M), providing more financial flexibility.

Bottom Line

WMB scores higher overall (69/100 vs 66/100), backed by strong 24.9% margins. 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.

Targa Resources Inc

ENERGY · OIL & GAS MIDSTREAM · USA

Targa Resources Corp. The company is headquartered in Houston, Texas.

Williams Companies Inc

ENERGY · OIL & GAS MIDSTREAM · USA

The Williams Companies, Inc., is an American energy company based in Tulsa, Oklahoma. Its core business is natural gas processing and transportation, with additional petroleum and electricity generation assets.

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