Targa Resources vs Williams Companies
Add, change or remove companies; up to four.
The short version
- Targa Resources is the larger business, with $17.0B of revenue in fiscal 2025 against $12.0B for Williams Companies.
- Williams Companies grew revenue faster (13.8%, against 4.0%).
- Williams Companies kept more of each dollar of sales as operating profit (35.1% operating margin, against 19.6%).
- Williams Companies turned more of its sales into free cash flow (8.4% FCF margin, against 3.4%).
- Targa Resources earned a higher return on the capital invested in it (13.3%, against 7.5%).
- Investors pay more for each dollar of Targa Resources’s earnings: a P/E of 28.9x against 28.6x for Williams Companies.
| Latest fiscal year | TRGP · FY25 | WMB · FY25 |
|---|---|---|
| Size | ||
| Market cap | $65.1B | $87.8B |
| Revenue | $17.0B | $12.0B |
| Free cash flow | $584M | $1.0B |
| Net income | $1.9B | $2.6B |
| Growth | ||
| Revenue growth | 4.0% | 13.8% |
| 5-year growth | 15.6% | 9.1% |
| Share count change | −2.0% | 0.2% |
| Profitability | ||
| Gross margin | 38.3% | — |
| Operating margin | 19.6% | 35.1% |
| Net margin | 11.3% | 21.9% |
| FCF margin | 3.4% | 8.4% |
| Return on capital | 13.3% | 7.5% |
| Return on equity | 68.0% | 20.7% |
| Balance sheet | ||
| Net debt | $17.6B | $29.3B |
| Net debt / EBITDA | 3.6x | 4.5x |
| Dividends and buybacks | $642M | $2.4B |
| Valuation & quality | ||
| P/E | 28.9x | 28.6x |
| Piotroski F-score | 6 | 6 |
Revenue
FY16
TRGP $5.6B
WMB $7.5B
FY17
TRGP $8.8B
WMB $8.0B
FY18
TRGP $10.5B
WMB $8.7B
FY19
TRGP $8.7B
WMB $8.2B
FY20
TRGP $8.3B
WMB $7.7B
FY21
TRGP $16.9B
WMB $10.6B
FY22
TRGP $20.9B
WMB $11.0B
FY23
TRGP $16.1B
WMB $10.9B
FY24
TRGP $16.4B
WMB $10.5B
FY25
TRGP $17.0B
WMB $12.0B
TRGP
WMB
Operating margin
FY16
TRGP 1.0%
WMB 9.2%
FY17
TRGP −1.4%
WMB 11.5%
FY18
TRGP 2.3%
WMB 8.8%
FY19
TRGP 2.2%
WMB 23.4%
FY20
TRGP −15.8%
WMB 28.5%
FY21
TRGP 5.1%
WMB 24.8%
FY22
TRGP 8.3%
WMB 27.5%
FY23
TRGP 16.4%
WMB 39.5%
FY24
TRGP 16.5%
WMB 31.8%
FY25
TRGP 19.6%
WMB 35.1%
TRGP
WMB
Free cash flow
FY16
TRGP $275M
WMB $2.1B
FY17
TRGP −$358M
WMB $690M
FY18
TRGP −$2.0B
WMB $37.0M
FY19
TRGP −$1.5B
WMB $1.6B
FY20
TRGP $793M
WMB $2.3B
FY21
TRGP $1.8B
WMB $2.7B
FY22
TRGP $1.0B
WMB $2.6B
FY23
TRGP $826M
WMB $3.4B
FY24
TRGP $684M
WMB $2.4B
FY25
TRGP $584M
WMB $1.0B
TRGP
WMB
Return on capital
FY16
TRGP 0.4%
WMB 1.4%
FY17
TRGP −0.9%
WMB 2.5%
FY18
TRGP 1.7%
WMB 1.2%
FY19
TRGP 1.0%
WMB 3.4%
FY20
TRGP −7.0%
WMB 4.2%
FY21
TRGP 6.7%
WMB 5.4%
FY22
TRGP 11.3%
WMB 6.9%
FY23
TRGP 12.5%
WMB 8.8%
FY24
TRGP 11.9%
WMB 6.5%
FY25
TRGP 13.3%
WMB 7.5%
TRGP
WMB
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.