Critical Analysis: Targa Pipeline Partners (APL) & Its Rivals

Targa Pipeline Partners (NYSE: APL) is one of 47 public companies in the “Oil Related Services and Equipment” industry, but how does it weigh in compared to its peers? We will compare Targa Pipeline Partners to related businesses based on the strength of its risk, dividends, analyst recommendations, profitability, valuation, earnings and institutional ownership.

Profitability

This table compares Targa Pipeline Partners and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Targa Pipeline Partners 14.09% 17.87% 9.56%
Targa Pipeline Partners Competitors -11.81% -5.49% -3.40%

Earnings & Valuation

This table compares Targa Pipeline Partners and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Targa Pipeline Partners N/A N/A 30.02
Targa Pipeline Partners Competitors $1.90 billion -$327.68 million -831.93

Targa Pipeline Partners’ peers have higher revenue, but lower earnings than Targa Pipeline Partners. Targa Pipeline Partners is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

65.9% of shares of all “Oil Related Services and Equipment” companies are held by institutional investors. 12.4% of shares of all “Oil Related Services and Equipment” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Targa Pipeline Partners and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Targa Pipeline Partners 0 0 0 0 N/A
Targa Pipeline Partners Competitors 412 2042 2811 115 2.49

As a group, “Oil Related Services and Equipment” companies have a potential upside of 12.77%. Given Targa Pipeline Partners’ peers higher possible upside, analysts clearly believe Targa Pipeline Partners has less favorable growth aspects than its peers.

About Targa Pipeline Partners

Targa Pipeline Partners, L.P. (the Partnership), formerly Atlas Pipeline Partners, L.P., was formed by its parent, Targa Resources Corp., to own, operate, acquire and develop a diversified portfolio of complementary midstream energy assets. The Partnership is a provider of midstream natural gas, natural gas liquids (NGL), terminaling and crude oil gathering services in the United States. The Partnership is engaged in the business of gathering, compressing, treating, processing and selling natural gas; storing, fractionating, treating, transporting and selling NGLs and NGL products; gathering, storing and terminaling crude oil; and storing, terminaling and selling refined petroleum products.

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