Kinder Morgan, Inc. (KMI) vs Williams Companies, Inc. (The) (WMB)

Kinder Morgan, Inc. 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 $69.5B — 1.2× the size. Kinder Morgan, Inc. trades at the lower P/E: 19.7× against 27.5×. Kinder Morgan, Inc. grew revenue faster over the last twelve months: 12.5% against 8.72%. Williams Companies, Inc. (The) has the higher net margin (25.2% vs 19.3%) and the higher return on invested capital (6.40% vs 5.02%). Both pay a dividend; Kinder Morgan, Inc. yields more (6.93% vs 5.28%). Across the 22 metrics below, Kinder Morgan, Inc. leads on 12 and Williams Companies, Inc. (The) on 10.

Valuation

Metric KMI WMB Oil & Gas Midstream median
P/E 19.71 27.48 13.19
P/S 3.81 6.95 2.60
P/B 2.08 5.53 2.08
Price to free cash flow 25.77 n/m 10.14
EV/EBITDA 13.06 16.24 8.11
EV/Sales 5.60 9.41 3.89
Earnings yield 5.07% 3.64% 6.83%
Free cash flow yield 3.88% (0.25%) 6.94%

Profitability

Metric KMI WMB Oil & Gas Midstream median
Gross margin 66.61% 82.83% 58.81%
Operating margin 29.05% 38.18% 32.14%
Net margin 19.31% 25.16% 21.16%
Free cash flow margin 14.78% (1.75%) 10.15%
Return on equity 10.67% 20.40% 11.30%
Return on assets 4.74% 5.26% 5.00%
Return on invested capital 5.02% 6.40% 6.13%

Growth

Metric KMI WMB Oil & Gas Midstream median
Revenue growth (TTM) 12.46% 8.72% 15.44%
EPS growth (last fiscal year) 17.09% 17.58% —
Revenue growth, 5-year CAGR 7.68% 9.13% 8.96%
Net income growth, 5-year CAGR 91.39% 65.91% 0.00%

Health

Metric KMI WMB Oil & Gas Midstream median
Debt to equity 0.98 1.97 0.78
Current ratio 0.46 0.48 1.19
Net debt to EBITDA 4.44 4.31 3.42

Dividend

Metric KMI WMB Oil & Gas Midstream median
Dividend yield 6.93% 5.28% 7.29%
Payout ratio 1.00 0.78 0.64

Size

Metric KMI WMB Oil & Gas Midstream median
Market cap 69.52b 86.11b 3.61b

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