Financial Contrast: Targa Resources Partners (NGLS) versus The Competition

Targa Resources Partners (NYSE: NGLS) is one of 37 publicly-traded companies in the “Oil & Gas Refining and Marketing” industry, but how does it contrast to its competitors? We will compare Targa Resources Partners to related businesses based on the strength of its dividends, profitability, valuation, earnings, analyst recommendations, institutional ownership and risk.

Profitability

This table compares Targa Resources Partners and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Targa Resources Partners 3.27% 0.29% 1.61%
Targa Resources Partners Competitors -1.42% 3.13% 1.60%

Dividends

Targa Resources Partners pays an annual dividend of $3.30 per share and has a dividend yield of 31.0%. Targa Resources Partners pays out 423.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & Gas Refining and Marketing” companies pay a dividend yield of 5.6% and pay out 394.7% of their earnings in the form of a dividend. Targa Resources Partners has raised its dividend for 7 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Targa Resources Partners and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Targa Resources Partners 0 1 0 0 2.00
Targa Resources Partners Competitors 383 1865 2462 114 2.48

Targa Resources Partners currently has a consensus price target of $52.00, suggesting a potential upside of 388.26%. As a group, “Oil & Gas Refining and Marketing” companies have a potential upside of 10.32%. Given Targa Resources Partners’ higher probable upside, analysts plainly believe Targa Resources Partners is more favorable than its competitors.

Valuation and Earnings

This table compares Targa Resources Partners and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Targa Resources Partners N/A N/A 13.65
Targa Resources Partners Competitors $41.74 billion $711.05 million 246.43

Targa Resources Partners’ competitors have higher revenue and earnings than Targa Resources Partners. Targa Resources Partners is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

47.4% of shares of all “Oil & Gas Refining and Marketing” companies are owned by institutional investors. 11.7% of shares of all “Oil & Gas Refining and Marketing” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Targa Resources Partners competitors beat Targa Resources Partners on 8 of the 12 factors compared.

About Targa Resources Partners

Targa Resources Partners LP is a provider of midstream natural gas and natural gas liquid (NGL) services in the United States with a presence in crude oil gathering and petroleum terminaling. The Company is engaged in the business of gathering, compressing, treating, processing and selling natural gas; storing, fractionating, treating, transporting and selling NGLs and NGL products, including services to liquefied petroleum gas (LPG) exporters; gathering, storing and terminaling crude oil, and storing, terminaling and selling refined petroleum products. The Company operates in two divisions: Gathering and Processing, and Logistics and Marketing. The Gathering and Processing division consists of two segments: Field Gathering and Processing, and Coastal Gathering and Processing. The Logistics and Marketing division consists of two segments: Logistics Assets and Marketing and Distribution.

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