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 $80.3B against $66.1B — 1.2× the size. Energy Transfer LP trades at the lower P/E: 12.6× against 24.7×. Energy Transfer LP grew revenue faster over the last twelve months: 56.1% against 8.78%. Williams Companies, Inc. (The) has the higher net margin (25.0% vs 4.20%) and the lower return on invested capital (5.46% vs 6.07%). Both pay a dividend; Energy Transfer LP yields more (8.78% vs 3.21%). Across the 22 metrics below, Energy Transfer LP leads on 14 and Williams Companies, Inc. (The) on 8.

Valuation

Metric ET WMB Oil & Gas Midstream median
P/E 12.64 24.74 11.68
P/S 0.53 6.39 2.39
P/B 1.40 3.73 1.68
Price to free cash flow 9.91 n/m 8.52
EV/EBITDA 7.95 15.65 9.03
EV/Sales 1.08 8.97 3.43
Earnings yield 7.91% 4.04% 7.78%
Free cash flow yield 10.09% (1.60%) 7.11%

Profitability

Metric ET WMB Oil & Gas Midstream median
Gross margin 21.28% 82.06% 54.87%
Operating margin 9.17% 37.48% 34.73%
Net margin 4.20% 24.98% 20.12%
Free cash flow margin 10.90% (10.23%) 14.43%
Return on equity 11.73% 17.21% 11.73%
Return on assets 3.75% 4.94% 4.43%
Return on invested capital 6.07% 5.46% 6.10%

Growth

Metric ET WMB Oil & Gas Midstream median
Revenue growth (TTM) 56.13% 8.78% 14.88%
EPS growth (last fiscal year) (5.47%) 17.58% (7.78%)
Revenue growth, 5-year CAGR 17.04% 9.13% 10.05%
Net income growth, 5-year CAGR 0.00% 65.91% 0.00%

Health

Metric ET WMB Oil & Gas Midstream median
Debt to equity 1.39 1.58 0.77
Current ratio 1.16 0.75 1.19
Net debt to EBITDA 4.56 4.31 3.46

Dividend

Metric ET WMB Oil & Gas Midstream median
Dividend yield 8.78% 3.21% 4.94%
Payout ratio 1.11 0.80 0.73

Size

Metric ET WMB Oil & Gas Midstream median
Market cap 66.08b 80.33b 3.56b

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