Williams Companies (NYSE: WMB) and American Midstream Partners (NYSE:AMID) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.
This is a breakdown of current recommendations and price targets for Williams Companies and American Midstream Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American Midstream Partners||0||3||0||0||2.00|
Williams Companies currently has a consensus price target of $33.46, suggesting a potential upside of 5.26%. American Midstream Partners has a consensus price target of $13.67, suggesting a potential upside of 133.62%. Given American Midstream Partners’ higher probable upside, analysts clearly believe American Midstream Partners is more favorable than Williams Companies.
This table compares Williams Companies and American Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American Midstream Partners||-13.56%||-57.25%||-7.62%|
Williams Companies pays an annual dividend of $1.36 per share and has a dividend yield of 4.3%. American Midstream Partners pays an annual dividend of $1.65 per share and has a dividend yield of 28.2%. Williams Companies pays out 215.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility & Risk
Williams Companies has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, American Midstream Partners has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.
Earnings & Valuation
This table compares Williams Companies and American Midstream Partners’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Williams Companies||$8.03 billion||3.28||$2.17 billion||$0.63||50.46|
|American Midstream Partners||$655.98 million||0.65||-$222.97 million||N/A||N/A|
Williams Companies has higher revenue and earnings than American Midstream Partners.
Insider and Institutional Ownership
86.4% of Williams Companies shares are owned by institutional investors. Comparatively, 43.1% of American Midstream Partners shares are owned by institutional investors. 0.5% of Williams Companies shares are owned by insiders. Comparatively, 5.4% of American Midstream Partners shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Williams Companies beats American Midstream Partners on 10 of the 14 factors compared between the two stocks.
About Williams Companies
The Williams Companies, Inc. operates as an energy infrastructure company primarily in the United States. It owns and operates natural gas pipeline system extending from Texas, Louisiana, Mississippi, and the Gulf of Mexico through Alabama, Georgia, South Carolina, North Carolina, Virginia, Maryland, Delaware, Pennsylvania, and New Jersey to the New York City metropolitan area. The company also owns and operates a natural gas pipeline system extending from the San Juan basin in northwestern New Mexico and southwestern Colorado through Colorado, Utah, Wyoming, Idaho, Oregon, and Washington to a point on the Canadian border near Sumas, Washington; gulfstream natural gas pipeline system extending from the Mobile Bay area in Alabama to markets in Florida; and constitution pipeline that would connect its gathering system in Susquehanna County, Pennsylvania to the Iroquois Gas Transmission and Tennessee Gas Pipeline systems in New York. In addition, it provides natural gas gathering, treating, processing, and compression services; natural gas liquids production, fractionation, storage, marketing, and transportation services; and deepwater production handling and crude oil transportation services. The company transports and stores natural gas to local natural gas distribution companies, municipal utilities, direct industrial users, electric power generators, and natural gas marketers and producers. As of December 31, 2017, it owned and operated approximately 13,600 miles of pipelines. The Williams Companies, Inc. was founded in 1908 and is headquartered in Tulsa, Oklahoma.
About American Midstream Partners
American Midstream Partners, LP provides midstream infrastructure that links the producers of natural gas, crude oil, natural gas liquids (NGLs), condensate, and specialty chemicals to various intermediate and end-use markets in the United States and Mexico. Its Gas Gathering and Processing Services segment offers services to producers of natural gas and crude oil, including transporting raw natural gas and crude oil from various receipt points through gathering systems, treating the raw natural gas, processing raw natural gas to separate the NGLs from the natural gas, fractionating NGLs, and selling or delivering pipeline-quality natural gas and NGLs. The company's Liquid Pipelines and Services segment transports, purchases, and sells crude oil. Its Natural Gas Transportation Services segment transports and delivers natural gas from producing wells, receipt points, or pipeline interconnects for shippers, local distribution companies, and utilities, as well as industrial, commercial, and power generation customers. The company's Offshore Pipelines and Services segment gathers and transports natural gas from receipt points to other pipeline interconnects, onshore facilities, and other delivery points. Its Terminalling Services segment provides petroleum products, distillates, chemicals, and agricultural products storage services at its marine terminals for commodity brokers, refiners, and chemical manufacturers. As of May 10, 2018, the company owned approximately 5,100 miles of interstate and intrastate pipelines; gas processing plants and fractionation facilities; an offshore semisubmersible floating production system with nameplate processing capacity of 90 thousand barrels per day of crude oil and 220 million cubic feet per day of natural gas; and terminal sites with approximately 6.7 million barrels of storage capacity. American Midstream GP, LLC serves as the general partner of the company. The company was founded in 2009 and is headquartered in Houston, Texas.
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