TC Energy Corporation (TRP) vs Williams Companies, Inc. (The) (WMB)

TC Energy Corporation and Williams Companies, Inc. (The) are both Oil & Gas Midstream companies. Williams Companies, Inc. (The) is the larger, with a market value of $84.7B against $62.2B — 1.4× the size. TC Energy Corporation trades at the lower P/E: 25.6× against 28.3×. TC Energy Corporation grew revenue faster over the last twelve months: 24.0% against 8.72%. Williams Companies, Inc. (The) has the higher net margin (25.2% vs 22.2%) and the higher return on invested capital (6.40% vs 5.39%). Both pay a dividend; TC Energy Corporation yields more (4.05% vs 2.91%). Across the 22 metrics below, TC Energy Corporation leads on 13 and Williams Companies, Inc. (The) on 9.

Valuation

Metric TRP WMB Oil & Gas Midstream median
P/E 25.62 28.28 12.77
P/S 5.67 7.15 2.36
P/B 2.53 5.69 2.09
Price to free cash flow 21.97 n/m 9.71
EV/EBITDA 13.23 16.58 8.30
EV/Sales 9.54 9.62 3.88
Earnings yield 3.90% 3.54% 7.15%
Free cash flow yield 4.55% (0.25%) 6.86%

Profitability

Metric TRP WMB Oil & Gas Midstream median
Gross margin 70.44% 82.83% 56.58%
Operating margin 53.94% 38.18% 34.18%
Net margin 22.19% 25.16% 22.50%
Free cash flow margin 25.80% (1.75%) 13.70%
Return on equity 9.94% 20.40% 14.65%
Return on assets 2.89% 5.26% 5.00%
Return on invested capital 5.39% 6.40% 6.13%

Growth

Metric TRP WMB Oil & Gas Midstream median
Revenue growth (TTM) 24.04% 8.72% 15.60%
EPS growth (last fiscal year) (27.55%) 17.58% (7.86%)
Revenue growth, 5-year CAGR 2.36% 9.13% 9.59%
Net income growth, 5-year CAGR (6.06%) 65.91% 0.00%

Health

Metric TRP WMB Oil & Gas Midstream median
Debt to equity 1.68 1.97 0.78
Current ratio 0.61 0.48 1.19
Net debt to EBITDA 5.43 4.31 3.42

Dividend

Metric TRP WMB Oil & Gas Midstream median
Dividend yield 4.05% 2.91% 4.54%
Payout ratio 1.04 0.83 0.76

Size

Metric TRP WMB Oil & Gas Midstream median
Market cap 62.17b 84.67b 3.73b

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