Kinder Morgan (KMI) vs. 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 competitors? We will compare Kinder Morgan to similar businesses based on the strength of its profitability, earnings, dividends, institutional ownership, valuation, analyst recommendations and risk.

Dividends

Kinder Morgan pays an annual dividend of $1.19 per share and has a dividend yield of 4.0%. 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 9.1% and pay out -133.8% of their earnings in the form of a dividend. Kinder Morgan has raised its dividend for 9 consecutive years. Kinder Morgan lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Kinder Morgan and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kinder Morgan	0	11	12	0	2.52
Kinder Morgan Competitors	5982	26994	40850	2423	2.52

Kinder Morgan currently has a consensus target price of $37.15, indicating a potential upside of 23.90%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 28.82%. Given Kinder Morgan’s competitors higher possible upside, analysts plainly believe Kinder Morgan has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Kinder Morgan and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Kinder Morgan	$16.94 billion	$3.06 billion	18.51
Kinder Morgan Competitors	$11.66 billion	$5.51 billion	-1.07

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

Institutional and Insider Ownership

62.5% of Kinder Morgan shares are held by institutional investors. Comparatively, 30.7% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 12.7% of Kinder Morgan shares are held by insiders. Comparatively, 15.5% of shares of all “Oil, Gas & Consumable Fuels” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Kinder Morgan has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Kinder Morgan’s competitors have a beta of -3.75, suggesting that their average stock price is 475% less volatile than the S&P 500.

Profitability

This table compares Kinder Morgan and its competitors’ 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	-455.90%	20.13%	6.34%

Summary

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

About Kinder Morgan

Kinder Morgan, Inc. operates as an energy infrastructure company primarily in North America. The company operates through Natural Gas Pipelines, Products Pipelines, Terminals, and CO2 segments. The Natural Gas Pipelines segment owns and operates interstate and intrastate natural gas pipeline, and storage systems; natural gas gathering systems and natural gas processing and treating facilities; natural gas liquids fractionation facilities and transportation systems; and liquefied natural gas gasification, liquefaction, and storage facilities. The Products Pipelines segment owns and operates refined petroleum products, and crude oil and condensate pipelines; and associated product terminals and petroleum pipeline transmix facilities. The Terminals segment owns and/or operates liquids and bulk terminals that stores and handles various commodities, including gasoline, diesel fuel, renewable fuel and feedstocks, chemicals, ethanol, metals, and petroleum coke; and owns tankers. The CO2 segment produces, transports, and markets CO2 to recovery and production crude oil from mature oil fields; owns interests in/or operates oil fields and gasoline processing plants; and operates a crude oil pipeline system in West Texas, as well as owns and operates RNG and LNG facilities. It owns and operates approximately 82,000 miles of pipelines and 139 terminals. The company was formerly known as Kinder Morgan Holdco LLC and changed its name to Kinder Morgan, Inc. in February 2011. Kinder Morgan, Inc. was incorporated in 2006 and is headquartered in Houston, Texas.