Energy Transfer LP (ET) vs Williams Companies, Inc. (The) (WMB)

Energy Transfer LP and Williams Companies, Inc. (The) are both Oil & Gas Midstream companies. Williams Companies, Inc. (The) is the larger, with a market value of $86.1B against $70.2B — 1.2× the size. Energy Transfer LP trades at the lower P/E: 13.7× against 27.5×. Energy Transfer LP grew revenue faster over the last twelve months: 33.3% against 8.72%. Williams Companies, Inc. (The) has the higher net margin (25.2% vs 4.70%) and the higher return on invested capital (6.40% vs 5.72%). Both pay a dividend; Energy Transfer LP yields more (8.97% vs 5.28%). Across the 22 metrics below, Energy Transfer LP leads on 13 and Williams Companies, Inc. (The) on 9.

Valuation

Metric ET WMB Oil & Gas Midstream median
P/E 13.73 27.48 13.19
P/S 0.65 6.95 2.60
P/B 1.47 5.53 2.08
Price to free cash flow 13.30 n/m 10.14
EV/EBITDA 8.11 16.24 8.11
EV/Sales 1.27 9.41 3.89
Earnings yield 7.28% 3.64% 6.83%
Free cash flow yield 7.52% (0.25%) 6.94%

Profitability

Metric ET WMB Oil & Gas Midstream median
Gross margin 23.58% 82.83% 58.81%
Operating margin 10.04% 38.18% 32.14%
Net margin 4.70% 25.16% 21.16%
Free cash flow margin 4.87% (1.75%) 10.15%
Return on equity 11.30% 20.40% 11.30%
Return on assets 3.70% 5.26% 5.00%
Return on invested capital 5.72% 6.40% 6.13%

Growth

Metric ET WMB Oil & Gas Midstream median
Revenue growth (TTM) 33.27% 8.72% 15.44%
EPS growth (last fiscal year) (5.47%) 17.58% —
Revenue growth, 5-year CAGR 17.04% 9.13% 8.96%
Net income growth, 5-year CAGR 0.00% 65.91% 0.00%

Health

Metric ET WMB Oil & Gas Midstream median
Debt to equity 1.35 1.97 0.78
Current ratio 1.16 0.48 1.19
Net debt to EBITDA 4.56 4.31 3.42

Dividend

Metric ET WMB Oil & Gas Midstream median
Dividend yield 8.97% 5.28% 7.29%
Payout ratio — 0.78 0.64

Size

Metric ET WMB Oil & Gas Midstream median
Market cap 70.21b 86.11b 3.61b

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