Targa Resources (NYSE:TRGP – Get Free Report) and Mach Natural Resources (NYSE:MNR – Get Free Report) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.
Dividends
Targa Resources pays an annual dividend of $5.00 per share and has a dividend yield of 1.7%. Mach Natural Resources pays an annual dividend of $1.44 per share and has a dividend yield of 13.3%. Targa Resources pays out 47.8% of its earnings in the form of a dividend. Mach Natural Resources pays out 244.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Targa Resources has increased its dividend for 5 consecutive years and Mach Natural Resources has increased its dividend for 1 consecutive years.
Insider and Institutional Ownership
92.1% of Targa Resources shares are held by institutional investors. Comparatively, 78.4% of Mach Natural Resources shares are held by institutional investors. 1.4% of Targa Resources shares are held by insiders. Comparatively, 87.8% of Mach Natural Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Targa Resources and Mach Natural Resources, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Targa Resources | 0 | 0 | 21 | 1 | 3.05 |
| Mach Natural Resources | 1 | 3 | 3 | 1 | 2.50 |
Targa Resources currently has a consensus target price of $317.75, suggesting a potential upside of 8.49%. Mach Natural Resources has a consensus target price of $16.33, suggesting a potential upside of 51.16%. Given Mach Natural Resources’ higher probable upside, analysts plainly believe Mach Natural Resources is more favorable than Targa Resources.
Risk & Volatility
Targa Resources has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Mach Natural Resources has a beta of -0.22, indicating that its share price is 122% less volatile than the S&P 500.
Profitability
This table compares Targa Resources and Mach Natural Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Targa Resources | 13.55% | 69.26% | 8.64% |
| Mach Natural Resources | 7.44% | 16.06% | 8.23% |
Earnings and Valuation
This table compares Targa Resources and Mach Natural Resources”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Targa Resources | $17.03 billion | 3.69 | $1.84 billion | $10.46 | 28.00 |
| Mach Natural Resources | $1.18 billion | 1.53 | $142.98 million | $0.59 | 18.31 |
Targa Resources has higher revenue and earnings than Mach Natural Resources. Mach Natural Resources is trading at a lower price-to-earnings ratio than Targa Resources, indicating that it is currently the more affordable of the two stocks.
Summary
Targa Resources beats Mach Natural Resources on 14 of the 17 factors compared between the two stocks.
About Targa Resources
Targa Resources Corp., together with its subsidiary, Targa Resources Partners LP, owns, operates, acquires, and develops a portfolio of complementary domestic midstream 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 also 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. As of December 31, 2023, it leased and managed approximately 605 railcars; 137 tractors; and 6 vacuum trucks and 2 pressurized NGL barges. Targa Resources Corp. was incorporated in 2005 and is headquartered in Houston, Texas.
About Mach Natural Resources
Mach Natural Resources LP, an independent upstream oil and gas company, focuses on the acquisition, development, and production of oil, natural gas, and natural gas liquids reserves in the Anadarko Basin region of Western Oklahoma, Southern Kansas, and the panhandle of Texas. It also owns a portfolio of midstream assets, as well as owns plants and water infrastructure. The company was incorporated in 2023 and is headquartered in Oklahoma City, Oklahoma.
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