Enterprise Products Partners L.P. (EPD) vs Williams Companies, Inc. (The) (WMB)

Enterprise Products Partners L.P. and Williams Companies, Inc. (The) are both Oil & Gas Midstream companies. Enterprise Products Partners L.P. and Williams Companies, Inc. (The) are of similar size ($86.1B and $80.5B). Enterprise Products Partners L.P. trades at the lower P/E: 12.8× against 27.5×. Williams Companies, Inc. (The) grew revenue faster over the last twelve months: 8.72% against 6.78%. Williams Companies, Inc. (The) has the higher net margin (25.2% vs 10.7%) and the lower return on invested capital (6.40% vs 7.68%). Both pay a dividend; Enterprise Products Partners L.P. yields more (8.06% vs 5.28%). Across the 22 metrics below, Enterprise Products Partners L.P. leads on 16 and Williams Companies, Inc. (The) on 6.

Valuation

Metric EPD WMB Oil & Gas Midstream median
P/E 12.76 27.48 13.19
P/S 1.36 6.95 2.60
P/B 2.56 5.53 2.08
Price to free cash flow 19.27 n/m 10.14
EV/EBITDA 10.58 16.24 8.11
EV/Sales 1.92 9.41 3.89
Earnings yield 7.84% 3.64% 6.83%
Free cash flow yield 5.19% (0.25%) 6.94%

Profitability

Metric EPD WMB Oil & Gas Midstream median
Gross margin 13.25% 82.83% 58.81%
Operating margin 13.43% 38.18% 32.14%
Net margin 10.68% 25.16% 21.16%
Free cash flow margin 7.06% (1.75%) 10.15%
Return on equity 20.48% 20.40% 11.30%
Return on assets 7.84% 5.26% 5.00%
Return on invested capital 7.68% 6.40% 6.13%

Growth

Metric EPD WMB Oil & Gas Midstream median
Revenue growth (TTM) 6.78% 8.72% 15.44%
EPS growth (last fiscal year) (1.12%) 17.58% —
Revenue growth, 5-year CAGR 14.10% 9.13% 8.96%
Net income growth, 5-year CAGR 8.80% 65.91% 0.00%

Health

Metric EPD WMB Oil & Gas Midstream median
Debt to equity 1.07 1.97 0.78
Current ratio 0.93 0.48 1.19
Net debt to EBITDA 3.35 4.31 3.42

Dividend

Metric EPD WMB Oil & Gas Midstream median
Dividend yield 8.06% 5.28% 7.29%
Payout ratio — 0.78 0.64

Size

Metric EPD WMB Oil & Gas Midstream median
Market cap 80.48b 86.11b 3.61b

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