Targa Resources Inc (TRGP)vsWilliams Companies Inc (WMB)
TRGP
Targa Resources Inc
$245.46
-0.26%
ENERGY · Cap: $52.90B
WMB
Williams Companies Inc
$73.81
-0.87%
ENERGY · Cap: $90.96B
Smart Verdict
WallStSmart Research — data-driven comparison
Targa Resources Inc generates 44% more annual revenue ($17.03B vs $11.83B). WMB leads profitability with a 22.1% profit margin vs 11.3%. TRGP appears more attractively valued with a PEG of 1.23. WMB earns a higher WallStSmart Score of 67/100 (B-).
TRGP
Strong Buy66
out of 100
Grade: B-
WMB
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+44.1%
Fair Value
$397.33
Current Price
$245.46
$151.87 discount
Margin of Safety
+29.0%
Fair Value
$100.15
Current Price
$73.81
$26.34 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 51 in profit
Earnings expanding 74.5% YoY
Large-cap with strong market position
Strong operational efficiency at 22.6%
Strong operational efficiency at 41.2%
Earnings expanding 50.8% YoY
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Areas to Watch
Moderate valuation
Trading at 17.2x book value
Revenue declined 7.9%
Distress zone — elevated risk
Expensive relative to growth rate
Premium valuation, high expectations priced in
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : TRGP
The strongest argument for TRGP centers on Return on Equity, EPS Growth, Market Cap. 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 22.1% and operating margin at 41.2%.
Bear Case : TRGP
The primary concerns for TRGP are P/E Ratio, Price/Book, Revenue Growth.
Bear Case : WMB
The primary concerns for WMB are PEG Ratio, P/E Ratio, Piotroski F-Score.
Key Dynamics to Monitor
TRGP profiles as a declining stock while WMB is a mature play — different risk/reward profiles.
TRGP carries more volatility with a beta of 0.85 — expect wider price swings.
WMB is growing revenue faster at 8.7% — sustainability is the question.
TRGP generates stronger free cash flow (542M), providing more financial flexibility.
Bottom Line
WMB scores higher overall (67/100 vs 66/100), backed by strong 22.1% margins. TRGP offers better value entry with a 44.1% margin of safety. 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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