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KMI vs TRGP
Which Stock Would AI Choose? Kinder Morgan (KMI) vs. Targa Resources (TRGP) Stock Comparison
Key Takeaways
- Kinder Morgan (KMI) delivered record second-quarter 2026 net income and adjusted EBITDA, supported by natural gas infrastructure demand and a substantial project backlog.
- Targa Resources (TRGP) reported strong first-quarter 2026 results with raised full-year adjusted EBITDA guidance, driven by Permian Basin volume growth and NGL operations.
- Over recent market activity, TRGP has shown stronger year-to-date and one-year total returns compared with KMI, reflecting differing growth profiles in the midstream energy sector.
- Both companies operate in energy midstream with exposure to natural gas and liquids, yet TRGP maintains a more concentrated Permian focus while KMI emphasizes broader pipeline stability and dividends.
- Market sentiment remains constructive for both amid rising energy demand, with KMI highlighting valuation considerations and TRGP underscoring expansion capital programs.
- Relative performance contrasts highlight trade-offs between KMI’s established scale and TRGP’s higher-growth trajectory in current market conditions.
Introduction
Kinder Morgan (KMI) and Targa Resources (TRGP) represent two prominent players in the U.S. energy midstream sector, providing critical infrastructure for natural gas, natural gas liquids, and related products. This comparison examines their recent performance, business models, and market positioning to assist investors and traders evaluating relative opportunities in energy infrastructure. Participants focused on dividend income, sector rotation, or midstream growth may find the analysis relevant for portfolio construction or tactical allocation decisions within the broader energy complex.
KMI Overview and Recent Performance
Kinder Morgan (KMI) operates one of North America’s largest energy infrastructure networks, primarily transporting and storing natural gas, refined products, and other commodities through an extensive pipeline system. In recent market activity, the stock has reflected steady investor interest tied to robust natural gas demand and infrastructure expansion. The company reported record second-quarter 2026 net income attributable to KMI of $867 million alongside adjusted EBITDA of $2,199 million, up 12% year over year. Earnings per share rose 22% to $0.39, with adjusted EPS increasing 32%. A sizable project backlog linked to power and gas needs has supported sentiment, while the shares have delivered year-to-date returns near 19% amid broader market conditions.
TRGP Overview and Recent Performance
Targa Resources (TRGP) focuses on midstream services with significant operations in gathering, processing, and transporting natural gas and natural gas liquids, particularly in the Permian Basin. Recent market activity has featured strong volume trends and operational expansion. The company posted record first-quarter 2026 net income of $480 million and subsequently raised its full-year 2026 adjusted EBITDA guidance to a range of $5.7 billion to $5.9 billion. Dividend declarations reached $1.25 per share quarterly, or $5.00 annualized. The stock has generated year-to-date returns exceeding 48% and one-year returns near 66%, outpacing broader benchmarks and reflecting favorable positioning in liquids-focused growth areas.
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Head-to-Head Comparison
Kinder Morgan (KMI) and Targa Resources (TRGP) both participate in the midstream energy sector but differ in scale, geographic emphasis, and growth drivers. KMI maintains a diversified pipeline network with greater emphasis on stable, fee-based cash flows and a large project backlog supporting long-term natural gas demand. TRGP concentrates more heavily on the Permian Basin, benefiting from elevated natural gas liquids volumes and processing capacity expansions. Recent momentum has favored TRGP, with superior total returns over the past year and stronger guidance revisions, while KMI has demonstrated consistent earnings records and relatively lower valuation multiples. Risk factors include capital expenditure intensity for both, though TRGP’s growth program appears more aggressive. Sector exposure remains comparable, centered on energy infrastructure, yet market sentiment has reflected TRGP’s higher-beta profile versus KMI’s more defensive characteristics in recent periods.
Tickeron AI Verdict
Based on observable factors such as relative momentum, volume growth consistency, and earnings trajectory, Tickeron’s AI would likely assign a modest probabilistic edge to Targa Resources (TRGP) in the current environment. Stronger recent returns and raised guidance tied to Permian activity provide a constructive backdrop, though Kinder Morgan (KMI)’s record results and infrastructure stability offer balancing considerations. Outcomes remain subject to evolving market conditions and sector dynamics.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Disclaimers and LimitationsTo compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is KMI is a StrongBuy and TRGP is a StrongBuy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
KMI’s FA Score shows that 2 FA rating(s) are green whileTRGP’s FA Score has 3 green FA rating(s).
- KMI’s FA Score: 2 green, 3 red.
- TRGP’s FA Score: 3 green, 2 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
KMI’s TA Score shows that 4 TA indicator(s) are bullish while TRGP’s TA Score has 3 bullish TA indicator(s).
- KMI’s TA Score: 4 bullish, 5 bearish.
- TRGP’s TA Score: 3 bullish, 6 bearish.
Price Growth
KMI (@Oil & Gas Pipelines) experienced а +2.56% price change this week, while TRGP (@Oil & Gas Pipelines) price change was -0.50% for the same time period.
The average weekly price growth across all stocks in the @Oil & Gas Pipelines industry was +7.28%. For the same industry, the average monthly price growth was +2.43%, and the average quarterly price growth was +19.82%.
Reported Earning Dates
KMI is expected to report earnings on Oct 21, 2026.
TRGP is expected to report earnings on Oct 29, 2026.
Industries' Descriptions
@Oil & Gas Pipelines (+7.28% weekly)Oil & Gas Pipelines industry includes companies that transport natural gas and crude oil through pipelines. These companies also collect and market the fuels. The pipeline segment could be considered as a midstream operation – functioning as a link between the upstream and downstream operations in the oil and gas industry. Some of the largest U.S. pipeline players include Enterprise Products Partners L.P, TC Energy Corporation and Energy Transfer, L.P.
| KMI | TRGP | KMI / TRGP | |
| Capitalization | 71.4B | 57.2B | 125% |
| EBITDA | 7.7B | 5.22B | 148% |
| Gain YTD | 20.024 | 46.786 | 43% |
| P/E Ratio | 20.70 | 25.51 | 81% |
| Revenue | 18B | 16.6B | 108% |
| Total Cash | N/A | 100M | - |
| Total Debt | 32.1B | 19.1B | 168% |
KMI | TRGP | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 24 | 68 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 20 Undervalued | 31 Undervalued | |
PROFIT vs RISK RATING 1..100 | 7 | 7 | |
SMR RATING 1..100 | 68 | 16 | |
PRICE GROWTH RATING 1..100 | 53 | 46 | |
P/E GROWTH RATING 1..100 | 55 | 42 | |
SEASONALITY SCORE 1..100 | 75 | 19 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
KMI's Valuation (20) in the Oil And Gas Pipelines industry is in the same range as TRGP (31) in the Oil Refining Or Marketing industry. This means that KMI’s stock grew similarly to TRGP’s over the last 12 months.
KMI's Profit vs Risk Rating (7) in the Oil And Gas Pipelines industry is in the same range as TRGP (7) in the Oil Refining Or Marketing industry. This means that KMI’s stock grew similarly to TRGP’s over the last 12 months.
TRGP's SMR Rating (16) in the Oil Refining Or Marketing industry is somewhat better than the same rating for KMI (68) in the Oil And Gas Pipelines industry. This means that TRGP’s stock grew somewhat faster than KMI’s over the last 12 months.
TRGP's Price Growth Rating (46) in the Oil Refining Or Marketing industry is in the same range as KMI (53) in the Oil And Gas Pipelines industry. This means that TRGP’s stock grew similarly to KMI’s over the last 12 months.
TRGP's P/E Growth Rating (42) in the Oil Refining Or Marketing industry is in the same range as KMI (55) in the Oil And Gas Pipelines industry. This means that TRGP’s stock grew similarly to KMI’s over the last 12 months.
| KMI | TRGP | |
|---|---|---|
| RSI ODDS (%) | N/A | N/A |
| Stochastic ODDS (%) | 2 days ago 43% | 2 days ago 53% |
| Momentum ODDS (%) | 2 days ago 67% | 2 days ago 55% |
| MACD ODDS (%) | 2 days ago 74% | 2 days ago 53% |
| TrendWeek ODDS (%) | 2 days ago 59% | 2 days ago 48% |
| TrendMonth ODDS (%) | 2 days ago 40% | 2 days ago 50% |
| Advances ODDS (%) | 2 days ago 58% | 15 days ago 76% |
| Declines ODDS (%) | 10 days ago 42% | 10 days ago 51% |
| BollingerBands ODDS (%) | 2 days ago 50% | 2 days ago 75% |
| Aroon ODDS (%) | 2 days ago 45% | 2 days ago 78% |
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KMI and
Correlation & Price change
A.I.dvisor indicates that over the last year, KMI has been closely correlated with WMB. These tickers have moved in lockstep 79% of the time. This A.I.-generated data suggests there is a high statistical probability that if KMI jumps, then WMB could also see price increases.
TRGP and
Correlation & Price change
A.I.dvisor indicates that over the last year, TRGP has been closely correlated with OKE. These tickers have moved in lockstep 74% of the time. This A.I.-generated data suggests there is a high statistical probability that if TRGP jumps, then OKE could also see price increases.
| Ticker / NAME | Correlation To TRGP | 1D Price Change % | ||
|---|---|---|---|---|
| TRGP | 100% | -0.67% | ||
| OKE - TRGP | 74% Closely correlated | +0.18% | ||
| KMI - TRGP | 62% Loosely correlated | +1.10% | ||
| AM - TRGP | 60% Loosely correlated | -0.72% | ||
| WMB - TRGP | 59% Loosely correlated | -0.90% | ||
| DTM - TRGP | 57% Loosely correlated | -0.98% | ||
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