COMPARE · Reviewed July 29, 2026
HESM vs TRGP
Verdict: Side-by-side breakdown using the Bull Rankings model. HESM scored 64.5, TRGP scored 56.1 — HESM leads.
Compare another set
HESM
Hess Midstream LP
64.5
$40.21 · $8.3B
fundamentals as of
Score gap
8.4
HESM leads
TRGP
Targa Resources Corp.
56.1
$269.19 · $57.8B
fundamentals as of
The model, pillar by pillar (0–100 each)
HESM
stronger →← stronger
TRGP
81
Qualityreturns · margins · balance sheet
76
50
Growthrevenue & earnings expansion
50
66
Valuevaluation vs sector peers
46
HESM is stronger on 2 of 3 pillars.
Fundamentals, head-to-head
HESM
TRGP
$796mC+
FCF
$262mC
+7.1%B
Rev
+1.1%C
—
D/E
5.85D
13.9xB+
P/E
27.5xC
1.67C+
PEG
1.25B
Winner per row is the stronger grade in our model; a tie or a missing value shows no highlight.
Valuation · DCF cross-check
HESM
TRGP
61% below
Price vs fair valuelower is cheaper
931% above
~-15%/yr
Growth the price implies10-yr FCF · lower = less priced in
>60%/yr
+142%
1-yr DCF upside
-91%
+158%
5-yr DCF upside
-90%
+185%
10-yr DCF upside
-89%
The DCF is a cross-check on intrinsic value, separate from the quality-growth score above.
Model signals
HESM
Why this score
- Raising its dividend
- Diluting shareholders
- Cyclical growth
- Short track record
TRGP
Why this score
- Raising its dividend
- Durable high returns
- Cyclical growth
The companies
HESMHess Midstream LP
Why now
Oil & Gas Midstream · market cap $8.3b. 9% off the 52-week high of $44.14. 6 sell-side analysts rate this an Underperform with a mean 1-yr target of $37.33 (implying -7% upside).
Moat
Net margin 23% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong.
Risk
Dividend payout 103% of earnings on a 7.6% yield — distribution coverage is thin; one earnings stumble could force a dividend cut. Hedge-book exposure — many commodity producers hedge forward production; if the hedge book is concentrated at prices well below spot, the upside the market expects is already locked away.
TRGPTarga Resources Corp.
Why now
Oil & Gas Midstream · market cap $57.8b. 8% off the 52-week high of $291.04. 21 sell-side analysts rate this a Buy with a mean 1-yr target of $296.62 (implying +10% upside).
Moat
Net margin 13% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 68% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. $57.8b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk
D/E 5.85 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Jurisdictional + permitting risk — mining and extraction operations concentrate exposure to political stability, royalty regimes, and environmental review timelines that can stall production for years.
Verdict — model-derived comparison
Generating verdict… typically 5–10 seconds
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.