Which Is a Better Investment, Kinder Morgan Inc or Targa Resources Corp Stock?

By AAII Staff
September 03, 2026
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Sifting through countless of stocks in the Oil, Gas & Consumable Fuels industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Kinder Morgan, Inc. or Targa Resources Corp. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Kinder Morgan, Inc. and Targa Resources Corp. compare based on key financial metrics to determine which better meets your investment needs.

About Kinder Morgan, Inc. and Targa Resources Corp.

Kinder Morgan, Inc. operates as an energy infrastructure company primarily in North America. It operates through Natural Gas Pipelines, Products Pipelines, Terminals, and CO2 segments. The Natural Gas Pipelines segment owns and operates interstate and intrastate natural gas pipeline, and storage systems; natural gas gathering systems and natural gas processing and treating facilities; natural gas liquids fractionation facilities and transportation systems; and liquefied natural gas gasification, liquefaction, and storage facilities. The Products Pipelines segment owns and operates refined petroleum products, and crude oil and condensate pipelines; and associated product terminals and petroleum pipeline transmix facilities. The Terminals segment owns and/or operates liquids and bulk terminals that stores and handles various commodities, including gasoline, diesel fuel, renewable fuel and feedstocks, chemicals, ethanol, metals, and petroleum coke; and owns tankers. The CO2 segment produces, transports, and markets CO2 to recovery and production crude oil from mature oil fields; owns interests in/or operates oil fields and gasoline processing plants; and operates a crude oil pipeline system in West Texas, as well as owns and operates RNG and LNG facilities. The company was formerly known as Kinder Morgan Holdco LLC and changed its name to Kinder Morgan, Inc. in February 2011. Kinder Morgan, Inc. was founded in 1997 and is headquartered in Houston, Texas.

Targa Resources Corp., together with its subsidiaries, owns, operates, acquires, and develops a portfolio of complementary domestic infrastructure assets in North America. It operates in two segments, Gathering and Processing, and Logistics and Transportation. The company is involved in gathering, compressing, treating, processing, transporting, and selling natural gas; storing, fractionating, treating, transporting, and selling natural gas liquids (NGL) and NGL products, including services to liquefied petroleum gas exporters; and gathering, storing, terminaling, purchasing, and selling crude oil. It is involved in the purchase and resale of NGL products; and sale of propane, as well as provision of related logistics services to multi-state retailers, independent retailers, and other end-users. In addition, the company offers NGL balancing services; and transportation services to refineries and petrochemical companies in the Gulf Coast area, as well as purchases, markets, and resells natural gas. The company also leased and owned railcars, tractors, vacuum trucks and pressurized NGL barges. Targa Resources Corp. was incorporated in 2005 and is headquartered in Houston, Texas.

Latest Oil, Gas & Consumable Fuels and Kinder Morgan, Inc., Targa Resources Corp. Stock News

As of September 2, 2026, Kinder Morgan, Inc. had a $71.2 billion market capitalization, compared to the Oil, Gas & Consumable Fuels median of $2.7 million. Kinder Morgan, Inc.’s stock is NA in 2026, NA in the previous five trading days and up 19.56% in the past year.

Currently, Kinder Morgan, Inc.’s price-earnings ratio is 20.6. Kinder Morgan, Inc.’s trailing 12-month revenue is $18.0 billion with a 19.3% net profit margin. Year-over-year quarterly sales growth most recently was 10.8%. Analysts expect adjusted earnings to reach $1.558 per share for the current fiscal year. Kinder Morgan, Inc. currently has a 3.7% dividend yield.

Currently, Targa Resources Corp.’s price-earnings ratio is 28.0. Targa Resources Corp.’s trailing 12-month revenue is $16.7 billion with a 13.5% net profit margin. Year-over-year quarterly sales growth most recently was 4.2%. Analysts expect adjusted earnings to reach $11.497 per share for the current fiscal year. Targa Resources Corp. currently has a 1.7% dividend yield.

How We Compare Kinder Morgan, Inc. and Targa Resources Corp. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Kinder Morgan, Inc. and Targa Resources Corp.’s stock grades to see how they measure up against one another.

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Kinder Morgan, Inc. and Targa Resources Corp. Growth Grades

Company Ticker Growth
Kinder Morgan, Inc. KMI B
Targa Resources Corp. TRGP A

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Kinder Morgan, Inc. has a Growth Score of 77, which is Strong. Targa Resources Corp. has a Growth Score of 82, which is Very Strong.

The Growth Grade Winner: Targa Resources Corp.

As you can clearly see from the Growth Grade breakdown above, Targa Resources Corp. has a more attractive growth grade than Kinder Morgan, Inc.. For investors who focus solely on how a company is growing relative to other companies in the same industry, Targa Resources Corp. could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Kinder Morgan, Inc. and Targa Resources Corp.’s Momentum Grades

Company Ticker Momentum
Kinder Morgan, Inc. KMI C
Targa Resources Corp. TRGP A

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Kinder Morgan, Inc. has a Momentum Score of 55, which is Average. Targa Resources Corp. has a Momentum Score of 83, which is Very Strong.

The Momentum Grade Winner: Targa Resources Corp.

As you can clearly see from the Momentum Grade breakdown above, Targa Resources Corp. is considered to have stronger momentum compared to Kinder Morgan, Inc.. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, Targa Resources Corp. could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Kinder Morgan, Inc. and Targa Resources Corp.’s Estimate Revisions Grades

Company Ticker Earnings Estimate
Kinder Morgan, Inc. KMI B
Targa Resources Corp. TRGP B

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Kinder Morgan, Inc. has a Earnings Estimate Score of 63, which is Positive. Targa Resources Corp. has a Earnings Estimate Score of 65, which is Positive.

The Earnings Estimate Revisions Grade Winner: It’s a Tie!

Looking at the Earnings Estimate Revisions Grade breakdown above, both Kinder Morgan, Inc. and Targa Resources Corp. have a grade of B. For those focusing solely on a company’s estimate revisions, other financial metrics will need to be evaluated to determine whether Kinder Morgan, Inc. or Targa Resources Corp. is a better fit.

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Other Kinder Morgan, Inc. and Targa Resources Corp. Grades

In addition to Momentum, Estimate Revisions and Growth, A+ Investor also provides grades for Value and Quality.

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Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Kinder Morgan, Inc. and Targa Resources Corp. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Kinder Morgan, Inc. or Targa Resources Corp. Stock?

Overall, Kinder Morgan, Inc. stock has a Growth Score of 77, Momentum Score of 55 and Estimate Revisions Score of 63.

Targa Resources Corp. stock has a Growth Score of 82, Momentum Score of 83 and Estimate Revisions Score of 65.

Comparing Kinder Morgan, Inc. and Targa Resources Corp.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Learn More About A+ Investor

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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