Kinetik vs Targa Resources
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KIRA’s take AI analyst
I put Kinetik and Targa Resources side by side, using each one’s latest annual report. Here is what stands out:
- Targa Resources is the larger business, with $17.0B of revenue in fiscal 2025 against $1.8B for Kinetik, about 9.7 times as much.
- Kinetik grew revenue faster (19.0%, against 4.0%).
- Targa Resources kept more of each dollar of sales as operating profit (19.6% operating margin, against 9.4%).
- Kinetik turned more of its sales into free cash flow (6.3% FCF margin, against 3.4%).
- Targa Resources earned a higher return on the capital invested in it (13.3%, against 8.6%).
- Investors pay more for each dollar of Targa Resources’s earnings: a P/E of 29.1x against 19.8x for Kinetik.
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
Kinetik
KNTK
3/9
Revenue growth5-year growthFCF margin
Targa Resources
TRGP
6/9
Operating marginNet marginReturn on capitalPiotroski F-scoreNet debt / EBITDAShare count change
Side by side
Best in the row
| Latest fiscal year | KNTK FY25 | TRGP FY25 |
|---|---|---|
| Size | ||
| Market cap | $4.2B | $65.6B |
| Revenue | $1.8B | $17.0B |
| Free cash flow | $112M | $584M |
| Net income | $178M | $1.9B |
| Growth | ||
| Revenue growth | 19.0% | 4.0% |
| 5-year growth | 64.1% | 15.6% |
| Share count change | 4.2% | −2.0% |
| Profitability | ||
| Gross margin | — | 38.3% |
| Operating margin | 9.4% | 19.6% |
| Net margin | 10.1% | 11.3% |
| FCF margin | 6.3% | 3.4% |
| Return on capital | 8.6% | 13.3% |
| Return on equity | — | 68.0% |
| Balance sheet | ||
| Net debt | $3.6B | $17.6B |
| Net debt / EBITDA | 6.7x | 3.6x |
| Dividends and buybacks | $370M | $642M |
| Valuation & quality | ||
| P/E | 19.8x | 29.1x |
| Piotroski F-score | 5 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.