ONEOK, Inc. (OKE) vs Williams Companies, Inc. (The) (WMB)

ONEOK, Inc. 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 $54.4B — 1.5× the size. ONEOK, Inc. trades at the lower P/E: 13.1× against 24.6×. ONEOK, Inc. grew revenue faster over the last twelve months: 36.8% against 8.78%. Williams Companies, Inc. (The) has the higher net margin (25.0% vs 9.42%) and the lower return on invested capital (5.46% vs 6.30%). Both pay a dividend; ONEOK, Inc. yields more (5.03% vs 3.24%). Across the 22 metrics below, ONEOK, Inc. leads on 15 and Williams Companies, Inc. (The) on 7.

Valuation

Metric OKE WMB Oil & Gas Midstream median
P/E 13.09 24.58 11.80
P/S 1.24 6.35 2.38
P/B 1.65 3.70 1.65
Price to free cash flow 21.25 n/m 7.76
EV/EBITDA 10.69 15.57 7.88
EV/Sales 1.90 8.92 3.36
Earnings yield 7.64% 4.07% 7.98%
Free cash flow yield 4.71% (1.61%) 7.23%

Profitability

Metric OKE WMB Oil & Gas Midstream median
Gross margin 25.20% 82.06% 55.22%
Operating margin 14.17% 37.48% 35.83%
Net margin 9.42% 24.98% 20.12%
Free cash flow margin 5.85% (10.23%) 14.43%
Return on equity 14.89% 17.21% 14.03%
Return on assets 5.77% 4.94% 4.62%
Return on invested capital 6.30% 5.46% 6.10%

Growth

Metric OKE WMB Oil & Gas Midstream median
Revenue growth (TTM) 36.82% 8.78% 15.70%
EPS growth (last fiscal year) 4.84% 17.58% (7.78%)
Revenue growth, 5-year CAGR 31.53% 9.13% 10.05%
Net income growth, 5-year CAGR 40.87% 65.91% 0.00%

Health

Metric OKE WMB Oil & Gas Midstream median
Debt to equity 0.88 1.58 0.77
Current ratio 0.84 0.75 1.16
Net debt to EBITDA 4.40 4.31 3.46

Dividend

Metric OKE WMB Oil & Gas Midstream median
Dividend yield 5.03% 3.24% 5.03%
Payout ratio 0.66 0.80 0.73

Size

Metric OKE WMB Oil & Gas Midstream median
Market cap 54.38b 80.33b 3.30b

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