Mach Natural Resources (NYSE:MNR – Get Free Report) and Targa Resources (NYSE:TRGP – Get Free Report) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.
Dividends
Mach Natural Resources pays an annual dividend of $1.44 per share and has a dividend yield of 13.3%. Targa Resources pays an annual dividend of $5.00 per share and has a dividend yield of 1.7%. Mach Natural Resources pays out 244.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Targa Resources pays out 47.8% of its earnings in the form of a dividend. Mach Natural Resources has increased its dividend for 1 consecutive years and Targa Resources has increased its dividend for 5 consecutive years.
Analyst Ratings
This is a breakdown of current recommendations for Mach Natural Resources and Targa Resources, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mach Natural Resources | 1 | 3 | 3 | 1 | 2.50 |
| Targa Resources | 0 | 0 | 21 | 1 | 3.05 |
Mach Natural Resources presently has a consensus price target of $16.33, suggesting a potential upside of 51.16%. Targa Resources has a consensus price target of $317.75, suggesting a potential upside of 8.49%. Given Mach Natural Resources’ higher possible upside, research analysts plainly believe Mach Natural Resources is more favorable than Targa Resources.
Institutional and Insider Ownership
78.4% of Mach Natural Resources shares are owned by institutional investors. Comparatively, 92.1% of Targa Resources shares are owned by institutional investors. 87.8% of Mach Natural Resources shares are owned by company insiders. Comparatively, 1.4% of Targa Resources 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 Mach Natural Resources and Targa Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mach Natural Resources | 7.44% | 16.06% | 8.23% |
| Targa Resources | 13.55% | 69.26% | 8.64% |
Risk and Volatility
Mach Natural Resources has a beta of -0.22, meaning that its share price is 122% less volatile than the S&P 500. Comparatively, Targa Resources has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.
Valuation & Earnings
This table compares Mach Natural Resources and Targa Resources”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mach Natural Resources | $1.18 billion | 1.53 | $142.98 million | $0.59 | 18.31 |
| Targa Resources | $17.03 billion | 3.69 | $1.84 billion | $10.46 | 28.00 |
Targa Resources has higher revenue and earnings than Mach Natural Resources. Mach Natural 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.
Summary
Targa Resources beats Mach Natural Resources on 14 of the 17 factors compared between the two stocks.
About Mach Natural Resources
Mach Natural Resources LP, an independent upstream oil and gas company, focuses on the acquisition, development, and production of oil, natural gas, and natural gas liquids reserves in the Anadarko Basin region of Western Oklahoma, Southern Kansas, and the panhandle of Texas. It also owns a portfolio of midstream assets, as well as owns plants and water infrastructure. The company was incorporated in 2023 and is headquartered in Oklahoma City, Oklahoma.
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.
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