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 $80.3B against $65.2B — 1.2× the size. Williams Companies, Inc. (The) trades at the lower P/E: 24.7× against 26.0×. TC Energy Corporation grew revenue faster over the last twelve months: 24.0% against 8.78%. Williams Companies, Inc. (The) has the higher net margin (25.0% vs 22.2%) and the higher return on invested capital (5.46% vs 5.39%). Both pay a dividend; TC Energy Corporation yields more (3.99% vs 3.21%). Across the 22 metrics below, Williams Companies, Inc. (The) leads on 14 and TC Energy Corporation on 8.

Valuation

Metric TRP WMB Oil & Gas Midstream median
P/E 26.02 24.74 11.68
P/S 5.76 6.39 2.39
P/B 2.57 3.73 1.68
Price to free cash flow 22.32 n/m 8.52
EV/EBITDA 13.36 15.65 9.03
EV/Sales 9.63 8.97 3.43
Earnings yield 3.84% 4.04% 7.78%
Free cash flow yield 4.48% (1.60%) 7.11%

Profitability

Metric TRP WMB Oil & Gas Midstream median
Gross margin 70.44% 82.06% 54.87%
Operating margin 53.94% 37.48% 34.73%
Net margin 22.19% 24.98% 20.12%
Free cash flow margin 25.80% (10.23%) 14.43%
Return on equity 9.94% 17.21% 11.73%
Return on assets 2.89% 4.94% 4.43%
Return on invested capital 5.39% 5.46% 6.10%

Growth

Metric TRP WMB Oil & Gas Midstream median
Revenue growth (TTM) 24.04% 8.78% 14.88%
EPS growth (last fiscal year) (27.55%) 17.58% (7.78%)
Revenue growth, 5-year CAGR 2.36% 9.13% 10.05%
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 1.58 0.77
Current ratio 0.61 0.75 1.19
Net debt to EBITDA 5.43 4.31 3.46

Dividend

Metric TRP WMB Oil & Gas Midstream median
Dividend yield 3.99% 3.21% 4.94%
Payout ratio 1.04 0.80 0.73

Size

Metric TRP WMB Oil & Gas Midstream median
Market cap 65.20b 80.33b 3.56b

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