Reviewing Williams Companies (WMB) and Boardwalk Pipeline Partners (BWP)

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Williams Companies (NYSE:WMB) and Boardwalk Pipeline Partners (NYSE:BWP) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Earnings & Valuation

This table compares Williams Companies and Boardwalk Pipeline 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 4.07 $2.17 billion $0.63 42.90
Boardwalk Pipeline Partners N/A N/A N/A N/A N/A

Williams Companies has higher revenue and earnings than Boardwalk Pipeline Partners.

Insider and Institutional Ownership

87.0% of Williams Companies shares are held by institutional investors. Comparatively, 92.6% of Boardwalk Pipeline Partners shares are held by institutional investors. 0.5% of Williams Companies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and target prices for Williams Companies and Boardwalk Pipeline Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Williams Companies 0 2 15 0 2.88
Boardwalk Pipeline Partners 0 4 2 0 2.33

Williams Companies presently has a consensus price target of $32.21, suggesting a potential upside of 19.18%. Boardwalk Pipeline Partners has a consensus price target of $15.01, suggesting a potential upside of 24.58%. Given Boardwalk Pipeline Partners’ higher possible upside, analysts clearly believe Boardwalk Pipeline Partners is more favorable than Williams Companies.

Dividends

Williams Companies pays an annual dividend of $1.36 per share and has a dividend yield of 5.0%. Boardwalk Pipeline Partners pays an annual dividend of $0.40 per share and has a dividend yield of 3.3%. 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. Boardwalk Pipeline Partners has raised its dividend for 2 consecutive years.

Profitability

This table compares Williams Companies and Boardwalk Pipeline Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Williams Companies 24.15% 4.44% 1.53%
Boardwalk Pipeline Partners N/A N/A N/A

Summary

Williams Companies beats Boardwalk Pipeline Partners on 8 of the 12 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 Boardwalk Pipeline Partners

Boardwalk Pipeline Partners, LP, through its subsidiaries, owns and operates integrated natural gas and natural gas liquids and other hydrocarbons (NGLs) pipeline and storage systems in the United States. It operates interstate natural gas and NGLs pipeline systems, and integrated storage facilities, which are located in the Gulf Coast region, Oklahoma, Arkansas and the Midwestern states of Tennessee, Kentucky, Illinois, Indiana and Ohio. The company's pipeline systems contain approximately 13,880 miles of interconnected natural gas pipelines, directly serving customers in 13 states and indirectly serving customers throughout the northeastern and southeastern United States through various interconnections with unaffiliated pipelines. It also owns and operates approximately 455 miles of NGLs pipelines serving customers in Louisiana and Texas. In addition, the company has underground storage caverns having aggregate capacity of approximately 205.0 billion cubic feet of working natural gas and 24.5 million barrels of NGLs. It serves producers of natural gas, local distribution companies, marketers, electric power generators, industrial users, and interstate and intrastate pipelines. The company was founded in 2005 and is headquartered in Houston, Texas. Boardwalk Pipeline Partners, LP is a subsidiary of Boardwalk Pipelines Holding Corp.

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