Suncor vs Targa Resources

On this page we compare Suncor Energy Inc. and Targa Resources Corp. across business models, financial performance, and market context, presenting neutral, accessible information to help readers understand the entities and their sectors. Educational content, not financial advice.

On this page we compare Suncor Energy Inc. and Targa Resources Corp. across business models, financial performance, and market context, presenting neutral, accessible information to help readers under...

Comparison Snapshot

Key Financial Metrics

SU

Metric

TRGP

$61.49B

Market Cap

$41.33B

-19.14%

Potential Profit

7.19%

Hold

Analyst Rating

Buy

Why It's Moving

JP Morgan Upgrades Suncor Energy to Overweight, Fueling Bullish Momentum

JP Morgan's upgrade reflects optimism on Suncor's integrated oil sands operations and potential for improved profitability in a stable energy market.
Stock rose 1.30% on January 23 to $69.61, bucking a short-term dip and aligning with a strong rising trend projecting 11.78% upside over three months.
Recent institutional buying, including Dodge & Cox increasing its stake, underscores growing fund interest ahead of Q4 earnings release.

Sentiment:

🐃Bullish

Targa Resources Seals $1.25B Midstream Deal, Signals Dividend Boost Amid Expansion Push.

Closed $1.25B Stakeholder Midstream acquisition effective January 1, enhancing Targa's critical midstream network for growing cleaner fuel demand.
Board approved $1.00/share Q4 dividend payable February 13 to holders of record January 30, with plans to raise it to $1.25/share quarterly starting Q1.
President Jennifer Kneale net acquired shares in January via zero-cost transactions, disposing some at $185.35 after boosting holdings to over 264K shares.

Sentiment:

🐃Bullish

JP Morgan Upgrades Suncor Energy to Overweight, Fueling Bullish Momentum

JP Morgan's upgrade reflects optimism on Suncor's integrated oil sands operations and potential for improved profitability in a stable energy market.
Stock rose 1.30% on January 23 to $69.61, bucking a short-term dip and aligning with a strong rising trend projecting 11.78% upside over three months.
Recent institutional buying, including Dodge & Cox increasing its stake, underscores growing fund interest ahead of Q4 earnings release.

Sentiment:

🐃Bullish

Targa Resources Seals $1.25B Midstream Deal, Signals Dividend Boost Amid Expansion Push.

Closed $1.25B Stakeholder Midstream acquisition effective January 1, enhancing Targa's critical midstream network for growing cleaner fuel demand.
Board approved $1.00/share Q4 dividend payable February 13 to holders of record January 30, with plans to raise it to $1.25/share quarterly starting Q1.
President Jennifer Kneale net acquired shares in January via zero-cost transactions, disposing some at $185.35 after boosting holdings to over 264K shares.

Sentiment:

🐃Bullish

Investment Analysis

Suncor

SU

Pros

Suncor reported Q3 2025 EPS of $1.05, beating forecasts by over 25%, with revenue also exceeding expectations at $8.91 billion.
The company achieved record upstream production, bitumen output, refining throughput, and retail sales growth of 8% year-over-year.
Strong capital discipline reduced full-year 2025 capex guidance by C$400 million, enhancing free cash flow availability for shareholder returns.

Considerations

Suncor's debt-to-equity ratio of 33.35 suggests a relatively high leverage level, posing risks in a rising interest rate environment.
The quick ratio of 0.83 indicates limited short-term liquidity to cover obligations, which could concern financially conservative investors.
The stock has underperformed relative to its 52-week high and may face volatility due to unpredictable energy market conditions and oil price fluctuations.

Targa Resources

TRGP

Pros

Targa Resources is expected to grow earnings by approximately 19.26% in the next year, signaling strong profit growth potential.
The company maintains a moderate buy consensus rating with no sell ratings, reflecting positive analyst sentiment.
Targa’s current P/E ratio of 21.74 and PEG ratio of 1.00 suggest the stock is fairly valued relative to earnings growth prospects.

Considerations

The company's price-to-book ratio of 7.59 indicates possible overvaluation relative to its assets and liabilities.
Targa operates mainly in the midstream energy sector, which can be sensitive to commodity price swings and regulatory changes.
Valuation appears elevated compared to the broader energy sector average P/E ratio of about 16.22, which may limit upside in some market conditions.

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