Kinder Morgan (KMI) and Its Rivals Critical Survey

Kinder Morgan (NYSE:KMI) is one of 1,051 publicly-traded companies in the “Oil, Gas & Consumable Fuels” industry, but how does it compare to its rivals? We will compare Kinder Morgan to similar companies based on the strength of its valuation, institutional ownership, profitability, earnings, risk, analyst recommendations and dividends.

Profitability

This table compares Kinder Morgan and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kinder Morgan	19.64%	10.84%	4.80%
Kinder Morgan Competitors	-455.84%	19.30%	6.64%

Dividends

Kinder Morgan pays an annual dividend of $1.19 per share and has a dividend yield of 3.8%. Kinder Morgan pays out 73.5% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 9.0% and pay out -134.4% of their earnings in the form of a dividend. Kinder Morgan has raised its dividend for 9 consecutive years. Kinder Morgan lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Volatility & Risk

Kinder Morgan has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, Kinder Morgan’s rivals have a beta of -3.76, suggesting that their average share price is 476% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Kinder Morgan and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kinder Morgan	0	11	12	0	2.52
Kinder Morgan Competitors	5994	27032	40912	2431	2.52

Kinder Morgan presently has a consensus target price of $37.15, indicating a potential upside of 17.69%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 27.35%. Given Kinder Morgan’s rivals higher possible upside, analysts plainly believe Kinder Morgan has less favorable growth aspects than its rivals.

Valuation & Earnings

This table compares Kinder Morgan and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Kinder Morgan	$16.94 billion	$3.06 billion	19.49
Kinder Morgan Competitors	$11.35 billion	$5.51 billion	-1.25

Kinder Morgan has higher revenue, but lower earnings than its rivals. Kinder Morgan is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

62.5% of Kinder Morgan shares are held by institutional investors. Comparatively, 30.8% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 12.7% of Kinder Morgan shares are held by company insiders. Comparatively, 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Kinder Morgan rivals beat Kinder Morgan on 9 of the 15 factors compared.

Kinder Morgan Company Profile

Kinder Morgan, Inc. (NYSE: KMI) is an energy infrastructure company that transports and stores natural gas, crude oil, refined petroleum products and other energy-related commodities. Its assets include pipelines, terminals and storage facilities serving energy producers, utilities, industrial customers and other markets across the United States and Canada. The company’s operations include natural gas transportation and storage, refined-products and crude-oil pipelines, bulk and liquids terminals, and carbon dioxide transportation.