Targa Resources (TRGP) Competitors

Targa Resources (NYSE:TRGP) and Williams Companies (NYSE:WMB) are both large-cap energy companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, community ranking, media sentiment, valuation, institutional ownership, analyst recommendations, risk and dividends.

Which has better earnings and valuation, TRGP or WMB?

Williams Companies has lower revenue, but higher earnings than Targa Resources. Targa Resources is trading at a lower price-to-earnings ratio than Williams Companies, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Targa Resources	$16.38B	2.14	$828.20M	$5.43	29.80
Williams Companies	$10.78B	6.65	$2.23B	$1.87	31.42

Does the MarketBeat Community prefer TRGP or WMB?

Targa Resources received 95 more outperform votes than Williams Companies when rated by MarketBeat users. However, 71.43% of users gave Williams Companies an outperform vote while only 70.28% of users gave Targa Resources an outperform vote.

Company	Underperform	Outperform
Targa Resources	Outperform Votes 790 70.28%	Underperform Votes 334 29.72%
Williams Companies	Outperform Votes 695 71.43%	Underperform Votes 278 28.57%

Do analysts rate TRGP or WMB?

Targa Resources currently has a consensus target price of $198.79, indicating a potential upside of 22.84%. Williams Companies has a consensus target price of $60.50, indicating a potential upside of 2.98%. Given Targa Resources' stronger consensus rating and higher possible upside, equities analysts clearly believe Targa Resources is more favorable than Williams Companies.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Targa Resources	0 Sell rating(s)	0 Hold rating(s)	13 Buy rating(s)	2 Strong Buy rating(s)	3.13
Williams Companies	0 Sell rating(s)	6 Hold rating(s)	8 Buy rating(s)	0 Strong Buy rating(s)	2.57

Is TRGP or WMB a better dividend stock?

Targa Resources pays an annual dividend of $4.00 per share and has a dividend yield of 2.5%. Williams Companies pays an annual dividend of $2.00 per share and has a dividend yield of 3.4%. Targa Resources pays out 73.7% of its earnings in the form of a dividend. Williams Companies pays out 107.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Targa Resources has raised its dividend for 5 consecutive years and Williams Companies has raised its dividend for 9 consecutive years. Williams Companies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Do institutionals & insiders hold more shares of TRGP or WMB?

92.1% of Targa Resources shares are held by institutional investors. Comparatively, 86.4% of Williams Companies shares are held by institutional investors. 1.3% of Targa Resources shares are held by company insiders. Comparatively, 0.4% of Williams Companies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Does the media favor TRGP or WMB?

In the previous week, Targa Resources had 5 more articles in the media than Williams Companies. MarketBeat recorded 33 mentions for Targa Resources and 28 mentions for Williams Companies. Williams Companies' average media sentiment score of 1.57 beat Targa Resources' score of 1.08 indicating that Williams Companies is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Targa Resources	24 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	3 Negative mention(s)	0 Very Negative mention(s)	Positive
Williams Companies	26 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive

Is TRGP or WMB more profitable?

Williams Companies has a net margin of 21.17% compared to Targa Resources' net margin of 7.81%. Targa Resources' return on equity of 28.67% beat Williams Companies' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Targa Resources	7.81%	28.67%	5.99%
Williams Companies	21.17%	15.85%	4.40%

Which has more volatility and risk, TRGP or WMB?

Targa Resources has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, Williams Companies has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.

Summary

Targa Resources beats Williams Companies on 14 of the 22 factors compared between the two stocks.