WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Targa Resources Inc generates 37% more annual revenue ($16.56B vs $12.11B). WMB leads profitability with a 23.1% profit margin vs 12.9%. TRGP appears more attractively valued with a PEG of 1.10. TRGP earns a higher WallStSmart Score of 66/100 (B-).

TRGP

Strong Buy

66

out of 100

Grade: B-

Growth: 4.7Profit: 8.0Value: 5.7Quality: 3.5
Piotroski: 4/9Altman Z: 1.27

WMB

Buy

65

out of 100

Grade: C+

Growth: 6.0Profit: 8.0Value: 4.3Quality: 3.0
Piotroski: 5/9Altman Z: 0.34

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TRGP4 strengths · Avg: 9.3/10
Return on EquityProfitability
67.8%10/10

Every $100 of equity generates 68 in profit

EPS GrowthGrowth
142.9%10/10

Earnings expanding 142.9% YoY

Market CapQuality
$61.06B9/10

Large-cap with strong market position

Operating MarginProfitability
20.9%8/10

Strong operational efficiency at 20.9%

WMB5 strengths · Avg: 9.0/10
Operating MarginProfitability
33.6%10/10

Strong operational efficiency at 33.6%

Market CapQuality
$91.10B9/10

Large-cap with strong market position

Return on EquityProfitability
21.9%9/10

Every $100 of equity generates 22 in profit

Profit MarginProfitability
23.1%9/10

Keeps 23 of every $100 in revenue as profit

EPS GrowthGrowth
25.0%8/10

Earnings expanding 25.0% YoY

Areas to Watch

TRGP4 concerns · Avg: 3.0/10
P/E RatioValuation
28.6x4/10

Moderate valuation

Price/BookValuation
18.0x4/10

Trading at 18.0x book value

Revenue GrowthGrowth
-10.2%2/10

Revenue declined 10.2%

Free Cash FlowQuality
$-160.00M2/10

Negative free cash flow — burning cash

WMB4 concerns · Avg: 2.8/10
PEG RatioValuation
2.304/10

Expensive relative to growth rate

P/E RatioValuation
32.1x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
0.342/10

Distress zone — elevated risk

Debt/EquityHealth
2.331/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : TRGP

The strongest argument for TRGP centers on Return on Equity, EPS Growth, Market Cap. PEG of 1.10 suggests the stock is reasonably priced for its growth.

Bull Case : WMB

The strongest argument for WMB centers on Operating Margin, Market Cap, Return on Equity. Profitability is solid with margins at 23.1% and operating margin at 33.6%.

Bear Case : TRGP

The primary concerns for TRGP are P/E Ratio, Price/Book, Revenue Growth. Debt-to-equity of 6.10 is elevated, increasing financial risk.

Bear Case : WMB

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

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 0.70 — expect wider price swings.

WMB is growing revenue faster at 9.0% — sustainability is the question.

WMB generates stronger free cash flow (244M), providing more financial flexibility.

Bottom Line

TRGP scores higher overall (66/100 vs 65/100). Both earn "Strong 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.

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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