Financial Comparison: Williams Companies (NYSE:WMB) & CNX Midstream Partners (CNXM)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Williams Companies 24.02% 3.61% 1.19%
CNX Midstream Partners 46.60% 16.46% 12.10%

Earnings and Valuation

This table compares Williams Companies and CNX Midstream Partners’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Williams Companies $8.03 billion 3.04 $2.17 billion $0.63 46.76
CNX Midstream Partners $233.85 million 5.41 $114.99 million $1.72 11.56

Williams Companies has higher revenue and earnings than CNX Midstream Partners. CNX Midstream Partners is trading at a lower price-to-earnings ratio than Williams Companies, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Williams Companies has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, CNX Midstream Partners has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500.

Dividends

Williams Companies pays an annual dividend of $1.36 per share and has a dividend yield of 4.6%. CNX Midstream Partners pays an annual dividend of $1.30 per share and has a dividend yield of 6.5%. 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. CNX Midstream Partners pays out 75.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CNX Midstream Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current ratings and recommmendations for Williams Companies and CNX Midstream Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Williams Companies 0 2 12 0 2.86
CNX Midstream Partners 0 3 4 0 2.57

Williams Companies currently has a consensus price target of $33.17, indicating a potential upside of 12.58%. CNX Midstream Partners has a consensus price target of $23.57, indicating a potential upside of 18.57%. Given CNX Midstream Partners’ higher probable upside, analysts clearly believe CNX Midstream Partners is more favorable than Williams Companies.

Insider & Institutional Ownership

85.9% of Williams Companies shares are owned by institutional investors. Comparatively, 21.5% of CNX Midstream Partners shares are owned by institutional investors. 0.5% of Williams Companies shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

CNX Midstream Partners beats Williams Companies on 9 of the 16 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 CNX Midstream Partners

CNX Midstream Partners LP owns, operates, develops, and acquires natural gas gathering and other midstream energy assets in the Marcellus Shale and Utica Shale in Pennsylvania and West Virginia. As of December 31, 2017, the company operates 18 compression and dehydration facilities. It also operates condensate handling facilities with handling capacities of 2,500 Bbl/d each in Majorsville, Pennsylvania, as well as Moundsville, West Virginia that provide condensate gathering, collection, separation, and stabilization services. CNX Midstream GP LLC serves as a general partner of the company. The company was formerly known as CONE Midstream Partners LP and changed its name to CNX Midstream Partners LP in January 2018. CNX Midstream Partners LP was founded in 2014 and is based in Canonsburg, Pennsylvania.

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