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 $86.1B against $57.5B — 1.5× the size. ONEOK, Inc. trades at the lower P/E: 15.3× against 27.5×. ONEOK, Inc. grew revenue faster over the last twelve months: 40.8% against 8.72%. Williams Companies, Inc. (The) has the higher net margin (25.2% vs 9.29%) and the lower return on invested capital (6.40% vs 7.02%). Both pay a dividend; ONEOK, Inc. yields more (5.56% vs 5.28%). 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 15.31 27.48 13.19
P/S 1.42 6.95 2.60
P/B 2.43 5.53 2.08
Price to free cash flow 19.28 n/m 10.14
EV/EBITDA 11.44 16.24 8.11
EV/Sales 2.22 9.41 3.89
Earnings yield 6.53% 3.64% 6.83%
Free cash flow yield 5.19% (0.25%) 6.94%

Profitability

Metric OKE WMB Oil & Gas Midstream median
Gross margin 27.21% 82.83% 58.81%
Operating margin 15.52% 38.18% 32.14%
Net margin 9.29% 25.16% 21.16%
Free cash flow margin 7.38% (1.75%) 10.15%
Return on equity 16.27% 20.40% 11.30%
Return on assets 5.49% 5.26% 5.00%
Return on invested capital 7.02% 6.40% 6.13%

Growth

Metric OKE WMB Oil & Gas Midstream median
Revenue growth (TTM) 40.83% 8.72% 15.44%
EPS growth (last fiscal year) 4.84% 17.58% —
Revenue growth, 5-year CAGR 31.53% 9.13% 8.96%
Net income growth, 5-year CAGR 40.87% 65.91% 0.00%

Health

Metric OKE WMB Oil & Gas Midstream median
Debt to equity 1.37 1.97 0.78
Current ratio 0.74 0.48 1.19
Net debt to EBITDA 4.40 4.31 3.42

Dividend

Metric OKE WMB Oil & Gas Midstream median
Dividend yield 5.56% 5.28% 7.29%
Payout ratio 0.70 0.78 0.64

Size

Metric OKE WMB Oil & Gas Midstream median
Market cap 57.48b 86.11b 3.61b

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