COMPARE · Data as of August 21, 2026
HESM vs TRGP
Verdict: Side-by-side breakdown using the Bull Rankings model. HESM scored 60.8, TRGP scored 52.4 — HESM leads.
Compare another set
HESM
Hess Midstream LP
60.8
$39.14 · $8.1B
fundamentals as of
Score gap
8.4
HESM leads
TRGP
Targa Resources Corp.
52.4
$299.10 · $64.1B
fundamentals as of
At a glance · who leads each dimension, on the model's own rules
- CheapestHESM13.5x
- Fastest growthHESM+2.8%
- Strongest balance sheetTRGP5.16
- Highest qualityHESM80 / 100
- Largest discount to fair valueHESM-62%
Side by side · every name on one set of axes
Growth against the P/E multiple. Up and to the right is cheaper and faster — the quality-growth idea in one picture. Points beyond the axis are pinned to the edge and marked off-scale rather than allowed to compress everything else.
The model, pillar by pillar (0–100 each)
HESM
stronger →← stronger
TRGP
80
Qualityreturns · margins · balance sheet
77
48
Growthrevenue & earnings expansion
41
58
Valuevaluation vs sector peers
45
HESM is stronger on 3 of 3 pillars.
Fundamentals, head-to-head
HESM
TRGP
$838mC+
FCF
$741mC+
+2.8%C
Rev
-2.0%D+
9.48D
D/E
5.16D
13.5xB
P/E
28.6xC
2.74C
PEG
1.25B
Winner per row is the stronger grade; where grades tie, the better figure breaks it. A true tie or a missing value shows no highlight.
Valuation · DCF cross-check
HESM
TRGP
62% below
Price vs fair valuelower is cheaper
336% above
~-17%/yr
Growth the price implies10-yr FCF · lower = less priced in
~42%/yr
+156%
1-yr DCF upside
-78%
+163%
5-yr DCF upside
-77%
+173%
10-yr DCF upside
-76%
The DCF is a cross-check on intrinsic value, separate from the quality-growth score above.
Model signals
HESM
Why this score
- Buying back stock
- Raising its dividend
TRGP
Why this score
- Raising its dividend
- Durable high returns
The companies
HESMHess Midstream LP
Why now
Oil & Gas Midstream · market cap $8.1b. 6% off the 52-week high of $41.75. 6 sell-side analysts rate this an Underperform with a mean 1-yr target of $37.50 (implying -4% 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
D/E 9.48 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Dividend payout 105% of earnings on a 7.8% 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 $64.1b. Trading near 52-week high of $307.94 — momentum setup, limited technical margin of safety. 21 sell-side analysts rate this a Buy with a mean 1-yr target of $305.24 (implying +2% upside).
Moat
Net margin 14% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 62% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. $64.1b 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 5.16 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Trading within 3% of the 52-week high — limited technical margin of safety; a momentum reversal would test conviction. 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.
Where HESM and TRGP diverge
On the headline score the gap is 8.4 points in favor of HESM. The widest single difference is Value, where HESM leads by 13.2 points.
- ValueHESM 58.4 · TRGP 45.2HESM +13.2
- GrowthHESM 48.0 · TRGP 41.1HESM +6.9
- QualityHESM 80.4 · TRGP 77.3HESM +3.1
Pillars run 0–100 against sector peers, so a score is a statement about a company relative to its own industry rather than to the other name here. A wide Value gap usually means the market already prices the difference in quality or growth — which is the trade-off this comparison comes down to.