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KMI vs OXY

KMI
Kinder Morgan, Inc.
NEUTRAL
Price
$27.42
Market Cap
$61.0B
Sector
Energy
AI Confidence
72%
OXY
Occidental Petroleum Corporation
NEUTRAL
Price
$62.31
Market Cap
$61.8B
Sector
Energy
AI Confidence
90%

Valuation

P/E Ratio
KMI
22.48
OXY
46.16
Forward P/E
KMI
21.76
OXY
20.25
P/B Ratio
KMI
1.98
OXY
2.21
P/S Ratio
KMI
3.72
OXY
2.86
EV/EBITDA
KMI
13.84
OXY
8.38

Profitability

Gross Margin
KMI
49.12%
OXY
69.82%
Operating Margin
KMI
25.64%
OXY
10.31%
Profit Margin
KMI
16.61%
OXY
10.77%
ROE
KMI
8.88%
OXY
5.93%
ROA
KMI
3.93%
OXY
2.74%

Growth

Revenue Growth
KMI
12.1%
OXY
148.9%
Earnings Growth
KMI
0.3%
OXY
--

Financial Health

Debt/Equity
KMI
1.02
OXY
0.64
Current Ratio
KMI
0.63
OXY
0.94
Quick Ratio
KMI
0.4
OXY
0.56

Dividends

Dividend Yield
KMI
4.27%
OXY
1.6%
Payout Ratio
KMI
95.08%
OXY
71.11%

AI Verdict

KMI NEUTRAL

Kinder Morgan (KMI) trades near fair value with a current price of $27.42, modestly below the analyst target of $31.15, implying 13.6% upside. The company exhibits strong revenue growth (12.1% YoY) and solid operating margins (25.64%), outperforming sector peers on profitability and growth, though earnings growth remains muted at 0.3% YoY despite a recent acceleration in EPS. Valuation is in line with the energy sector average (P/E 22.48 vs. 22.54), but elevated payout ratio (95.08%) and insider selling raise sustainability concerns. While the 4.27% dividend yield is attractive, weak liquidity (current ratio 0.63) and high leverage (D/E 1.02) constrain financial flexibility, offsetting otherwise stable midstream fundamentals.

Strengths
Revenue growth of 12.1% YoY significantly outpaces peer average of 0.11% and positions KMI as a top performer in the midstream segment
Operating margin of 25.64% and gross margin of 49.12% reflect strong cost control and asset efficiency, well above sector averages of 8.65% profit margin and ~20% operating margin implied by ROE spread
ROE of 8.88% exceeds sector median despite higher leverage, indicating effective capital deployment relative to equity base
Risks
Earnings growth of only 0.3% YoY despite strong revenue growth suggests margin compression or one-time costs, raising concerns about profit conversion
Payout ratio of 95.08% leaves minimal buffer for dividend coverage, increasing risk of cut if cash flow dips
Debt/Equity of 1.02 is above sector average of 0.56 and peer MPC (1.43) is the only comparable, increasing refinancing and interest rate risk
OXY NEUTRAL

OXY shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Strong revenue growth of 148.9%
Risks
High valuation with P/E of 46.2
Premium vs Graham Number ($29.24)

Compare Another Pair

KMI vs OXY: Head-to-Head Comparison

This page compares Kinder Morgan, Inc. (KMI) and Occidental Petroleum Corporation (OXY) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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