TGS vs YPF: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of September 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: YPF is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. TGS and YPF share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined TGS and YPF exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Transportadora de Gas del Sur runs roughly 9,200 km of high-pressure gas pipeline across southern and central Argentina, the largest transmission system in Latin America, moving gas from the Neuquen, San Jorge and Austral basins into Buenos Aires. Four segments carry the business: regulated Natural Gas Transportation, whose tariffs are set by the regulator ENARGAS; Liquids Production and Commercialization, which strips ethane, propane, butane and natural gasoline out of the gas stream at General Cerri and exports them through the Galvan port terminal; Midstream, the non-regulated conditioning, compression and gathering plants that serve Vaca Muerta producers at Tratayen, Rincon La Ceniza and Rio Neuquen; and a small Telecommunications arm, Telcosur. CIESA holds the Class A control block, itself co-controlled by Pampa Energia and the Sielecki family, so the free float sits in the Class B shares that back the ADR.

Full TGS guide

YPF Sociedad Anonima is Argentina's integrated oil and gas company: it explores and produces crude and natural gas, runs the country's largest refining system, and sells fuel through a nationwide service station network under the YPF brand. The Argentine state holds 51% of the equity, the remainder trades publicly, and the ADRs have been listed on the NYSE since the 1990s. Over the past three years the company has been reshaping itself around unconventional assets, selling or handing back dozens of mature conventional blocks (the Andes divestment program) and pushing capital into Vaca Muerta, where lifting costs in its core shale hub run near $4 per barrel of oil equivalent against roughly $8.8 consolidated. It also holds stakes in midstream and export infrastructure, including the VMOS crude pipeline to an Atlantic terminal, and has signed partnerships with Eni and Shell around a floating LNG project aimed at monetizing Argentine gas for export.

Full YPF guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• TGS drivers: The integrated NGL project; Perito Moreno pipeline and tariff normalization.
• YPF drivers: Vaca Muerta volume growth; Export infrastructure and the shift to dollar revenue.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Country risk dominates: TGS earns most of its revenue in pesos under a government that sets its regulated tariffs, and a policy reversal or a renewed tariff freeze would compress the transportation segment the same way it did in the 2018 to 2023 stretch. For YPF, argentine sovereign and policy risk sits above everything else: the state owns 51%, so board composition, fuel pricing, export permits, and currency access are all subject to the politics of the day, and past administrations have intervened in domestic prices in ways that cut refining margins.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick TGS if you believe its drivers more; YPF if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the TGS and YPF guides.

TGS. The reported financials are Argentine pesos restated for inflation, so peso figures such as Q2 2026 revenue of ~Ps. 535.5 billion and comprehensive income of ~Ps. 133.1 billion are not comparable across years without that adjustment, and the dollar figures above are conversions. The ~13x trailing multiple stands against a US and global midstream peer median closer to the low-to-mid twenties, a gap that has persisted for years and reflects Argentine sovereign and tariff risk rather than a defect in the assets. The most recent annual dividend was ~$0.93 per ADS, a trailing yield near ~3%, and the payout competes directly with a capex program that runs through 2030.

YPF. On annualized recent EBITDA the enterprise value works out to roughly four times, a level well below US shale independents of similar growth, and the gap is the market's price for Argentine country risk rather than a judgment on the wells. Reported earnings per ADR are noisy because 2025 carried large impairments from the conventional asset exits, so trailing price to earnings ratios on screeners can be misleading in either direction. YPF pays no dividend on the ADRs at present, with cash directed to capex and debt reduction.

Headline figures (approximate, August 2026): TGS shows revenue (ttm) ~$1.25 billion, net income (ttm) ~$350 million, market cap ~$4.6 billion, p/e (ttm) ~13x; YPF shows revenue (ttm) ~$19 billion in US dollars (screeners that show Argentine peso figures will look wildly different), adjusted ebitda (q2 2026) ~$2.8 billion, an all-time quarterly record, at ~43% of revenue, net income (q2 2026) ~$1.2 billion, the second highest quarter on record, market cap ~$21 billion (~391 million ADRs, ADR price recently near $50).

TGS and YPF are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined TGS and YPF exposure against your real portfolio. It is not an investment adviser.