MPLX LP (MPLX) vs Williams Companies, Inc. (The) (WMB)

MPLX 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 $58.8B — 1.5× the size. MPLX LP trades at the lower P/E: 12.2× against 27.5×. Williams Companies, Inc. (The) grew revenue faster over the last twelve months: 8.72% against 8.71%. MPLX LP has the higher net margin (35.8% vs 25.2%) and the higher return on invested capital (9.45% vs 6.40%). Both pay a dividend; MPLX LP yields more (9.32% vs 5.28%). Across the 22 metrics below, MPLX LP leads on 18 and Williams Companies, Inc. (The) on 4.

Valuation

Metric MPLX WMB Oil & Gas Midstream median
P/E 12.22 27.48 13.19
P/S 4.36 6.95 2.60
P/B 4.05 5.53 2.08
Price to free cash flow 13.36 n/m 10.14
EV/EBITDA 11.22 16.24 8.11
EV/Sales 6.22 9.41 3.89
Earnings yield 8.19% 3.64% 6.83%
Free cash flow yield 7.48% (0.25%) 6.94%

Profitability

Metric MPLX WMB Oil & Gas Midstream median
Gross margin 59.69% 82.83% 58.81%
Operating margin 44.44% 38.18% 32.14%
Net margin 35.75% 25.16% 21.16%
Free cash flow margin 32.63% (1.75%) 10.15%
Return on equity 33.41% 20.40% 11.30%
Return on assets 11.70% 5.26% 5.00%
Return on invested capital 9.45% 6.40% 6.13%

Growth

Metric MPLX WMB Oil & Gas Midstream median
Revenue growth (TTM) 8.71% 8.72% 15.44%
EPS growth (last fiscal year) 14.49% 17.58% —
Revenue growth, 5-year CAGR 11.42% 9.13% 8.96%
Net income growth, 5-year CAGR 0.00% 65.91% 0.00%

Health

Metric MPLX WMB Oil & Gas Midstream median
Debt to equity 1.80 1.97 0.78
Current ratio 0.89 0.48 1.19
Net debt to EBITDA 3.21 4.31 3.42

Dividend

Metric MPLX WMB Oil & Gas Midstream median
Dividend yield 9.32% 5.28% 7.29%
Payout ratio — 0.78 0.64

Size

Metric MPLX WMB Oil & Gas Midstream median
Market cap 58.78b 86.11b 3.61b

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