EQT Midstream Partners, (NYSE: EQM) and Williams Companies, Inc. (The) (NYSE:WMB) are both mid-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitabiliy and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and target prices for EQT Midstream Partners, and Williams Companies, Inc. (The), as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EQT Midstream Partners, 0 3 4 0 2.57
Williams Companies, Inc. (The) 0 3 13 1 2.88

EQT Midstream Partners, presently has a consensus price target of $91.60, suggesting a potential upside of 18.56%. Williams Companies, Inc. (The) has a consensus price target of $32.77, suggesting a potential upside of 5.20%. Given EQT Midstream Partners,’s higher possible upside, analysts plainly believe EQT Midstream Partners, is more favorable than Williams Companies, Inc. (The).

Institutional and Insider Ownership

74.9% of EQT Midstream Partners, shares are owned by institutional investors. Comparatively, 84.5% of Williams Companies, Inc. (The) shares are owned by institutional investors. 0.5% of Williams Companies, Inc. (The) shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

EQT Midstream Partners, pays an annual dividend of $3.56 per share and has a dividend yield of 4.6%. Williams Companies, Inc. (The) pays an annual dividend of $1.20 per share and has a dividend yield of 3.9%. EQT Midstream Partners, pays out 68.9% of its earnings in the form of a dividend. Williams Companies, Inc. (The) pays out -3,998.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. EQT Midstream Partners, has raised its dividend for 4 consecutive years. EQT Midstream Partners, is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares EQT Midstream Partners, and Williams Companies, Inc. (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EQT Midstream Partners, 67.48% 25.49% 16.96%
Williams Companies, Inc. (The) 0.18% 3.74% 1.14%

Valuation and Earnings

This table compares EQT Midstream Partners, and Williams Companies, Inc. (The)’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
EQT Midstream Partners, $753.25 million 8.27 $604.17 million $5.17 14.94
Williams Companies, Inc. (The) $7.83 billion 3.29 $3.58 billion ($0.03) -1,037.99

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

Volatility and Risk

EQT Midstream Partners, has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, Williams Companies, Inc. (The) has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.

Summary

Williams Companies, Inc. (The) beats EQT Midstream Partners, on 10 of the 18 factors compared between the two stocks.

EQT Midstream Partners, Company Profile

EQT Midstream Partners, LP (EQM) owns, operates, acquires and develops midstream assets in the Appalachian Basin. The Company’s segments include Gathering and Transmission. The Gathering segment primarily includes high pressure gathering lines and the Federal Energy Regulatory Commission (FERC)-regulated low pressure gathering system. Transmission includes EQM’s FERC-regulated interstate pipeline and storage business. The Company’s operations are primarily focused in southwestern Pennsylvania and northern West Virginia. As of December 31, 2016, the Company provided midstream services to EQT Corporation (EQT) and a range of third parties across 24 counties in Pennsylvania, West Virginia and Ohio through its two assets: the gathering system, which delivered natural gas from wells and other receipt points to transmission pipelines, and the transmission and storage system, which served as a header system transmission pipeline.

Williams Companies, Inc. (The) Company Profile

The Williams Companies, Inc. is an energy infrastructure company. The Company is focused on connecting North America’s hydrocarbon resource plays to markets for natural gas, natural gas liquids (NGL), and olefins. As of December 31, 2016, its interstate gas pipelines, midstream and olefins production interests were held through its investment in Williams Partners L.P. (WPZ). The Company’s segments include Williams Partners, Williams NGL & Petchem Services and Other. The Williams Partners segment includes its consolidated master limited partnership, WPZ. The gas pipeline business includes interstate natural gas pipelines and pipeline joint project investments. The midstream business provides natural gas gathering, treating, processing and compression services. The Williams NGL & Petchem Services segment includes its Texas Belle pipeline and certain other domestic olefins pipeline assets. Other segment includes its corporate operations and Canadian construction services company.

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