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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) offers diversified, contracted cash flows, a higher dividend yield, and a record project backlog, while Targa Resources (TRGP) is delivering faster growth and stronger recent momentum.
- KMI trades near a forward price-to-earnings (P/E) multiple of roughly 21x, notably below TRGP, which trades near 30x earnings.
- TRGP has posted materially stronger relative performance, with a roughly 108% one-year total return versus about 30% for KMI.
- Tickeron AI Verdict: Based on trend consistency, momentum, and catalysts, the AI framework currently favors TRGP — though at a premium valuation that raises execution risk.
- For deeper context, explore KMI Major News and KMI Today's Price Move, as well as TRGP Major News and TRGP Today's Price Move.
- To see which trading strategies are currently gaining traction across the market, explore Trending AI Robots.
Introduction
Kinder Morgan, Inc. (KMI) and Targa Resources Corp. (TRGP) are two of the largest publicly traded midstream energy companies in North America, yet they represent very different investment profiles. KMI operates a diversified network of natural gas pipelines, products pipelines, terminals, and carbon dioxide (CO2) assets, while TRGP is concentrated on gathering, processing, fractionation, and logistics for natural gas liquids (NGLs) tied closely to the Permian Basin. This stock comparison is relevant for investors and traders weighing a diversified, yield-oriented energy infrastructure holding against a faster-growing, NGL-focused midstream operator — particularly amid rising liquefied natural gas (LNG) exports and power demand.
KMI Overview and Recent Performance
Kinder Morgan is one of North America's largest energy infrastructure operators, transporting roughly 40% of the natural gas consumed in the United States. In recent weeks, sentiment has been supported by a third-quarter earnings report that beat expectations, with revenue rising 9.3% year over year and adjusted earnings per share (EPS) increasing about 21%. A central driver of the positive narrative is the company's expansion backlog, which reached a record $14.4 billion after major project additions, including the Southeast Connector and Permian Link pipelines, both backed by long-term, take-or-pay contracts. Management has cautioned that some favorable one-time items from 2026 may not recur, which has tempered near-term enthusiasm. KMI's dividend yield of roughly 3.5% and a balance-sheet leverage ratio near the low end of its target range reinforce its defensive, income-oriented appeal.
TRGP Overview and Recent Performance
Targa Resources Corp. is a leading midstream operator focused on natural gas gathering and processing, NGL transportation and fractionation, and liquefied petroleum gas (LPG) export services, with a heavy concentration in the Permian Basin. Recent market activity has been strongly positive, with the stock gaining approximately 55% in 2026 and more than doubling over the past year. A key catalyst was a 20-year fee-based agreement signed with ExxonMobil covering Permian processing and downstream volumes, which extends contracted cash-flow visibility well into the next decade. TRGP has also reported record adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), record Permian inlet volumes, and record fractionation volumes. These growth drivers are offset by a premium valuation and a substantial, multi-billion-dollar growth capital program that must be executed on time to sustain momentum.
Trending AI Robots
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Head-to-Head Comparison
The two companies diverge most clearly on business mix and growth profile. KMI generates earnings across a diversified set of segments — natural gas pipelines, products pipelines, terminals, and CO2 — which smooths results and supports a higher dividend yield. TRGP, by contrast, is a more focused, higher-beta play on Permian NGL volumes and export capacity, which produces faster growth but greater sensitivity to commodity prices and basin-specific takeaway constraints. On valuation, KMI trades near 21x earnings versus roughly 30x for TRGP, reflecting the market's willingness to pay a premium for TRGP's growth trajectory. Risk factors also differ: KMI faces uneven year-to-year growth as large projects phase into service, while TRGP carries execution and overbuild risk tied to its heavy capital program. Sentiment favors TRGP's momentum, while KMI appeals to investors seeking stability and income.
Tickeron AI Verdict
Weighing trend consistency, relative momentum, and catalysts, the Tickeron AI framework currently leans toward TRGP. The stock's superior one-year and year-to-date relative performance, record operational volumes, and a long-dated, fee-based ExxonMobil agreement point to a stronger near-term trend and a more clearly defined growth runway. KMI offers greater diversification, a more attractive valuation, and a higher yield, which gives it a defensive edge. However, the premium multiple on TRGP introduces meaningful execution and valuation risk, meaning the AI's preference is probabilistic rather than definitive and could shift as relative momentum and market conditions evolve.
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.
To 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 Buy and TRGP is a Buy.
KMI's RSI Oscillator is staying in oversold zone for 1 day
It is expected that a price bounce should occur soon.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
The 10-day moving average for KMI crossed bullishly above the 50-day moving average on October 12, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 12 of 20 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 60%.
Following a +1.74% 3-day Advance, the price is estimated to grow further. Considering data from situations where KMI advanced for three days, in 199 of 348 cases, the price rose further within the following month. The odds of a continued upward trend are 57%.
KMI may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 166 of 291 cases where KMI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 57%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 30, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on KMI as a result. In 40 of 91 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 44%.
The Moving Average Convergence Divergence Histogram (MACD) for KMI turned negative on October 30, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In 21 of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at 46%.
KMI moved below its 50-day moving average on November 04, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KMI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 42%.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 6 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 45, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 55 (best 1 - 100 worst), indicating steady price growth. KMI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 58 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 67 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 78 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.109) is normal, around the industry mean (147.140). P/E Ratio (19.329) is within average values for comparable stocks, (6.511). Projected Growth (PEG Ratio) (3.126) is also within normal values, averaging (13.660). Dividend Yield (0.040) settles around the average of (15719315456.000) among similar stocks. P/S Ratio (3.807) is also within normal values, averaging (4.657).
TRGP in upward trend: price expected to rise as it breaks its lower Bollinger Band on November 05, 2026
TRGP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 25 of 27 cases where TRGP's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The 10-day moving average for TRGP crossed bullishly above the 50-day moving average on October 13, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 10 of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 67%.
Following a +3.38% 3-day Advance, the price is estimated to grow further. Considering data from situations where TRGP advanced for three days, in 279 of 371 cases, the price rose further within the following month. The odds of a continued upward trend are 75%.
The Aroon Indicator entered an Uptrend today. In 303 of 386 cases where TRGP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 78%.
Bearish Trend Analysis
The 10-day RSI Indicator for TRGP moved out of overbought territory on November 02, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 50 similar instances where the indicator moved out of overbought territory. In 17 of the 50 cases, the stock moved lower in the following days. This puts the odds of a move lower at 34%.
The Momentum Indicator moved below the 0 level on November 04, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on TRGP as a result. In 45 of 88 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 51%.
The Moving Average Convergence Divergence Histogram (MACD) for TRGP turned negative on November 04, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In 24 of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at 48%.
TRGP moved below its 50-day moving average on November 04, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TRGP declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 53%.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 5 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 45, placing this stock better than average.
The Tickeron SMR rating for this company is 16 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 34 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 44 (best 1 - 100 worst), indicating steady price growth. TRGP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 76 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (15.517) is normal, around the industry mean (147.140). P/E Ratio (25.223) is within average values for comparable stocks, (6.511). Projected Growth (PEG Ratio) (1.245) is also within normal values, averaging (13.660). Dividend Yield (0.019) settles around the average of (15719315456.000) among similar stocks. P/S Ratio (3.667) is also within normal values, averaging (4.657).
KMI | TRGP | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 73 | 11 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 78 Overvalued | 76 Overvalued | |
PROFIT vs RISK RATING 1..100 | 6 | 5 | |
SMR RATING 1..100 | 67 | 16 | |
PRICE GROWTH RATING 1..100 | 55 | 44 | |
P/E GROWTH RATING 1..100 | 58 | 34 | |
SEASONALITY SCORE 1..100 | 50 | 65 |
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.
TRGP's Valuation (76) in the Oil Refining Or Marketing industry is in the same range as KMI (78) 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 Profit vs Risk Rating (5) in the Oil Refining Or Marketing industry is in the same range as KMI (6) 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 SMR Rating (16) in the Oil Refining Or Marketing industry is somewhat better than the same rating for KMI (67) 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 (44) 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.
TRGP's P/E Growth Rating (34) in the Oil Refining Or Marketing industry is in the same range as KMI (58) 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 (%) | 3 days ago 82% | 3 days ago 34% |
| Stochastic ODDS (%) | 3 days ago 70% | 3 days ago 84% |
| Momentum ODDS (%) | 3 days ago 44% | 3 days ago 51% |
| MACD ODDS (%) | 3 days ago 46% | 3 days ago 48% |
| TrendWeek ODDS (%) | 3 days ago 43% | 3 days ago 49% |
| TrendMonth ODDS (%) | 3 days ago 38% | 3 days ago 47% |
| Advances ODDS (%) | 19 days ago 57% | 10 days ago 75% |
| Declines ODDS (%) | 3 days ago 42% | 3 days ago 53% |
| BollingerBands ODDS (%) | 3 days ago 76% | 3 days ago 90% |
| Aroon ODDS (%) | 3 days ago 57% | 3 days ago 78% |
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 overvalued. 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 1 FA rating(s) are green while TRGP’s FA Score has 2 green FA rating(s).
- KMI’s FA Score: 1 green, 4 red.
- TRGP’s FA Score: 2 green, 3 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 6 TA indicator(s) are bullish while TRGP’s TA Score has 5 bullish TA indicator(s).
- KMI’s TA Score: 6 bullish, 4 bearish.
- TRGP’s TA Score: 5 bullish, 5 bearish.
Price Growth
KMI (@Oil & Gas Pipelines) experienced а -10.76% price change this week, while TRGP (@Oil & Gas Pipelines) price change was -16.00% for the same time period.
The average weekly price growth across all stocks in the @Oil & Gas Pipelines industry was -10.66%. For the same industry, the average monthly price growth was -11.48%, and the average quarterly price growth was -6.93%.
Reported Earning Dates
KMI is expected to report earnings on Jan 20, 2027.
TRGP is expected to report earnings on Feb 25, 2027.
Industries' Descriptions
@Oil & Gas Pipelines (-10.66% 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.
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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 83% 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 75% 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% | -2.66% | ||
| OKE - TRGP | 75% Closely correlated | -1.23% | ||
| KMI - TRGP | 70% Closely correlated | -0.76% | ||
| WMB - TRGP | 68% Closely correlated | -0.26% | ||
| AM - TRGP | 64% Loosely correlated | -0.99% | ||
| PBA - TRGP | 64% Loosely correlated | +1.39% | ||
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