Reviewing Comstock Resources (NYSE:CRK) & Targa Resources (NYSE:TRGP)

Targa Resources (NYSE:TRGP) and Comstock Resources (NYSE:CRK) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Institutional & Insider Ownership

92.1% of Targa Resources shares are held by institutional investors. Comparatively, 36.1% of Comstock Resources shares are held by institutional investors. 1.4% of Targa Resources shares are held by insiders. Comparatively, 2.3% of Comstock Resources shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Targa Resources and Comstock Resources”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Targa Resources	$17.03 billion	3.71	$1.84 billion	$10.46	28.15
Comstock Resources	$2.22 billion	1.86	$395.61 million	$1.78	7.88

Targa Resources has higher revenue and earnings than Comstock Resources. Comstock 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.

Analyst Ratings

This is a breakdown of current ratings for Targa Resources and Comstock Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Targa Resources	0	0	20	2	3.09
Comstock Resources	5	10	0	0	1.67

Targa Resources currently has a consensus price target of $325.47, suggesting a potential upside of 10.55%. Comstock Resources has a consensus price target of $15.00, suggesting a potential upside of 6.92%. Given Targa Resources’ stronger consensus rating and higher possible upside, research analysts clearly believe Targa Resources is more favorable than Comstock Resources.

Profitability

This table compares Targa Resources and Comstock 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%
Comstock Resources	23.31%	4.12%	1.70%

Risk & Volatility

Targa Resources has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Comstock Resources has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500.

Summary

Targa Resources beats Comstock Resources on 13 of the 15 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 Comstock Resources

Comstock Resources, Inc., an independent energy company, engages in the acquisition, exploration, development, and production of natural gas and oil properties in the United States. Its assets are located in the Haynesville and Bossier shales located in North Louisiana and East Texas. The company was incorporated in 1919 and is headquartered in Frisco, Texas. Comstock Resources, Inc. is a subsidiary of Arkoma Drilling, L.P.