Financial Contrast: Williams Companies (NYSE:WMB) vs. Rattler Midstream (NYSE:RTLR)

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Williams Companies (NYSE:WMB) and Rattler Midstream (NASDAQ:RTLR) are both oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Williams Companies 0.73% 6.46% 2.29%
Rattler Midstream N/A N/A N/A

Analyst Recommendations

This is a breakdown of current ratings and price targets for Williams Companies and Rattler Midstream, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Williams Companies 0 3 11 1 2.87
Rattler Midstream 0 4 11 0 2.73

Williams Companies currently has a consensus price target of $30.38, suggesting a potential upside of 30.97%. Rattler Midstream has a consensus price target of $22.54, suggesting a potential upside of 27.91%. Given Williams Companies’ stronger consensus rating and higher probable upside, research analysts clearly believe Williams Companies is more favorable than Rattler Midstream.

Earnings and Valuation

This table compares Williams Companies and Rattler Midstream’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Williams Companies $8.69 billion 3.24 -$155.00 million $0.79 29.37
Rattler Midstream N/A N/A N/A N/A N/A

Rattler Midstream has lower revenue, but higher earnings than Williams Companies.

Insider and Institutional Ownership

88.2% of Williams Companies shares are held by institutional investors. Comparatively, 1.6% of Rattler Midstream shares are held by institutional investors. 0.3% of Williams Companies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Williams Companies pays an annual dividend of $1.52 per share and has a dividend yield of 6.6%. Rattler Midstream does not pay a dividend. Williams Companies pays out 192.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Williams Companies beats Rattler Midstream on 10 of the 11 factors compared between the two stocks.

About Williams Companies

The Williams Companies, Inc. operates as an energy infrastructure company primarily in the United States. The company's Northeast G&P segment engages in the natural gas gathering, compression, and processing business, as well as natural gas liquids (NGL) fractionation business in the Marcellus and Utica Shale regions in Pennsylvania, West Virginia, New York, and Ohio. Its Atlantic-Gulf segment operates Transco, a 9,900-mile interstate natural gas pipeline 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. It is also involved in the operation of natural gas gathering, processing, and treating; crude oil transportation and production handling; and NGL fractionation assets within the onshore, offshore shelf, and deepwater areas in and around the Gulf Coast states of Texas, Louisiana, Mississippi, and Alabama. In addition, this segment operates various petrochemical and feedstock pipelines in the Gulf Coast region. The company's West segment operates Northwest Pipeline, an interstate natural gas pipeline system that extends from 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. This segment is also involved in the operation of natural gas gathering, processing, and treating; and NGL fractionation and storage assets, as well as engages in the NGL and natural gas marketing businesses. The Williams Companies, Inc. was founded in 1908 and is headquartered in Tulsa, Oklahoma.

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