Comparing Targa Resources (NYSE:TRGP) & Summit Midstream (NYSE:SMC)

Targa Resources (NYSE:TRGPGet Free Report) and Summit Midstream (NYSE:SMCGet Free Report) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Insider and Institutional Ownership

92.1% of Targa Resources shares are owned by institutional investors. Comparatively, 43.0% of Summit Midstream shares are owned by institutional investors. 1.4% of Targa Resources shares are owned by company insiders. Comparatively, 5.3% of Summit Midstream shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Targa Resources and Summit Midstream”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Targa Resources $16.06 billion 2.84 $828.20 million $5.53 37.81
Summit Midstream $458.90 million 0.99 -$38.95 million ($12.81) -3.34

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

Analyst Ratings

This is a breakdown of recent ratings for Targa Resources and Summit Midstream, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Targa Resources 0 1 13 1 3.00
Summit Midstream 0 0 0 0 0.00

Targa Resources currently has a consensus price target of $189.21, suggesting a potential downside of 9.51%. Given Targa Resources’ stronger consensus rating and higher possible upside, research analysts plainly believe Targa Resources is more favorable than Summit Midstream.

Volatility and Risk

Targa Resources has a beta of 2.3, meaning that its share price is 130% more volatile than the S&P 500. Comparatively, Summit Midstream has a beta of 2.37, meaning that its share price is 137% more volatile than the S&P 500.

Profitability

This table compares Targa Resources and Summit Midstream’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Targa Resources 7.65% 27.59% 5.86%
Summit Midstream -23.01% 0.71% 0.22%

Summary

Targa Resources beats Summit Midstream on 13 of the 15 factors compared between the two stocks.

About Targa Resources

(Get Free Report)

Targa Resources Corp., together with its subsidiary, Targa Resources Partners LP, owns, operates, acquires, and develops a portfolio of complementary domestic midstream infrastructure assets in North America. It operates in two segments, Gathering and Processing, and Logistics and Transportation. The company is involved in gathering, compressing, treating, processing, transporting, and selling natural gas; storing, fractionating, treating, transporting, and selling natural gas liquids (NGL) and NGL products, including services to liquefied petroleum gas exporters; and gathering, storing, terminaling, purchasing, and selling crude oil. It is also involved in the purchase and resale of NGL products; and sale of propane, as well as provision of related logistics services to multi-state retailers, independent retailers, and other end-users. In addition, the company offers NGL balancing services; and transportation services to refineries and petrochemical companies in the Gulf Coast area, as well as purchases, markets, and resells natural gas. As of December 31, 2023, it leased and managed approximately 605 railcars; 137 tractors; and 6 vacuum trucks and 2 pressurized NGL barges. Targa Resources Corp. was incorporated in 2005 and is headquartered in Houston, Texas.

About Summit Midstream

(Get Free Report)

Summit Midstream Corporation focuses on owning, developing, and operating midstream energy infrastructure assets primarily shale formations in the continental United States. It operates natural gas, crude oil, and produced water gathering systems in four unconventional resource basins, including the Williston Basin in North Dakota, which includes the Bakken and Three Forks shale formations; the Denver-Julesburg Basin that consists of the Niobrara and Codell shale formations in Colorado and Wyoming; the Fort Worth Basin in Texas, which comprises the Barnett Shale formation; and the Piceance Basin in Colorado, which includes the Mesaverde formation, as well as the emerging Mancos and Niobrara Shale formations. It serves natural gas and crude oil producers. Summit Midstream Corporation was founded in 2012 and is based in Houston, Texas.

Receive News & Ratings for Targa Resources Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Targa Resources and related companies with MarketBeat.com's FREE daily email newsletter.