Targa Pipeline Partners (APL) & National-Oilwell Varco (NOV) Head to Head Analysis

Targa Pipeline Partners (NYSE: APL) and National-Oilwell Varco (NYSE:NOV) are both mid-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.

Earnings & Valuation

This table compares Targa Pipeline Partners and National-Oilwell Varco’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Targa Pipeline Partners N/A N/A N/A $0.89 30.02
National-Oilwell Varco $7.25 billion 2.05 -$2.41 billion ($2.49) -15.72

Targa Pipeline Partners has higher earnings, but lower revenue than National-Oilwell Varco. National-Oilwell Varco is trading at a lower price-to-earnings ratio than Targa Pipeline Partners, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

92.4% of National-Oilwell Varco shares are owned by institutional investors. 0.2% of National-Oilwell Varco shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Targa Pipeline Partners and National-Oilwell Varco’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Targa Pipeline Partners 14.09% 17.87% 9.56%
National-Oilwell Varco -13.33% -1.41% -0.94%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Targa Pipeline Partners and National-Oilwell Varco, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Targa Pipeline Partners 0 0 0 0 N/A
National-Oilwell Varco 3 17 7 0 2.15

National-Oilwell Varco has a consensus price target of $37.71, suggesting a potential downside of 3.64%. Given National-Oilwell Varco’s higher probable upside, analysts clearly believe National-Oilwell Varco is more favorable than Targa Pipeline Partners.

Dividends

National-Oilwell Varco pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Targa Pipeline Partners does not pay a dividend. National-Oilwell Varco pays out -8.0% of its earnings in the form of a dividend.

Summary

National-Oilwell Varco beats Targa Pipeline Partners on 7 of the 12 factors compared between the two stocks.

About Targa Pipeline Partners

Targa Pipeline Partners, L.P. (the Partnership), formerly Atlas Pipeline Partners, L.P., was formed by its parent, Targa Resources Corp., to own, operate, acquire and develop a diversified portfolio of complementary midstream energy assets. The Partnership is a provider of midstream natural gas, natural gas liquids (NGL), terminaling and crude oil gathering services in the United States. The Partnership is engaged in the business of gathering, compressing, treating, processing and selling natural gas; storing, fractionating, treating, transporting and selling NGLs and NGL products; gathering, storing and terminaling crude oil; and storing, terminaling and selling refined petroleum products.

About National-Oilwell Varco

National Oilwell Varco, Inc. is an oilfield equipment manufacturer and technology provider. The Company operates through four segments: Rig Systems, Rig Aftermarket, Wellbore Technologies and Completion & Production Solutions. The Rig Systems segment makes and supports the capital equipment and integrated systems needed to drill oil and gas wells on land and offshore. The Rig Systems segment designs, manufactures and sells land rigs, offshore drilling equipment packages, and drilling rig components. The Rig Aftermarket segment provides aftermarket products and services to support a large installed base of land and offshore rigs, and drilling rig components manufactured by the Company’s Rig Systems segment. The Wellbore Technologies segment designs, manufactures, rents and sells a range of equipment and technologies used to perform drilling operations. The Completion & Production Solutions segment integrates technologies for well completions and oil and gas production.

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