Williams Companies (NYSE:WMB) and Oasis Midstream Partners (OMP) Critical Review

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

Analyst Ratings

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This is a breakdown of recent ratings and target prices for Williams Companies and Oasis Midstream Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Williams Companies 0 3 11 0 2.79
Oasis Midstream Partners 0 2 8 0 2.80



Williams Companies presently has a consensus price target of $34.18, suggesting a potential upside of 32.85%. Oasis Midstream Partners has a consensus price target of $21.50, suggesting a potential upside of 22.44%. Given Williams Companies’ higher possible upside, equities research analysts clearly believe Williams Companies is more favorable than Oasis Midstream Partners.

Profitability

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

Net Margins Return on Equity Return on Assets
Williams Companies 27.07% 3.38% 1.10%
Oasis Midstream Partners N/A N/A N/A

Insider & Institutional Ownership

86.5% of Williams Companies shares are held by institutional investors. Comparatively, 25.3% of Oasis Midstream Partners shares are held by institutional investors. 0.5% of Williams Companies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Williams Companies and Oasis Midstream Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Williams Companies $8.03 billion 2.65 $2.17 billion $0.63 40.84
Oasis Midstream Partners $182.22 million 2.65 $49.21 million $0.43 40.84

Williams Companies has higher revenue and earnings than Oasis Midstream Partners. Oasis 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.

Dividends

Williams Companies pays an annual dividend of $1.36 per share and has a dividend yield of 5.3%. Oasis Midstream Partners pays an annual dividend of $1.50 per share and has a dividend yield of 8.5%. 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. Oasis Midstream Partners pays out 348.8% 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 Oasis Midstream Partners on 11 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 Oasis Midstream Partners

Oasis Midstream Partners LP provides crude oil, natural gas, and water-related midstream services in North America. It is involved in various activities, including natural gas gathering, compression, processing, and gas lift supply; crude oil gathering, stabilization, blending, and storage; gathering, transportation, gathering and disposal of produced and flow back water; freshwater distribution; and supply and distribution of fracwater and flushwater. OMP GP LLC serves as the general partner of the company. Oasis Midstream Partners LP was founded in 2013 and is based in Houston, Texas. The company is a subsidiary of OMS Holdings LLC.

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