The Williams Companies (NYSE:WMB) and New Fortress Energy (NASDAQ:NFE) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for The Williams Companies and New Fortress Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
The Williams Companies | 0 | 2 | 12 | 1 | 2.93 |
New Fortress Energy | 0 | 4 | 7 | 0 | 2.64 |
The Williams Companies presently has a consensus target price of $23.8571, suggesting a potential upside of 5.14%. New Fortress Energy has a consensus target price of $42.7692, suggesting a potential downside of 7.61%. Given The Williams Companies' stronger consensus rating and higher possible upside, analysts plainly believe The Williams Companies is more favorable than New Fortress Energy.
Valuation and Earnings
This table compares The Williams Companies and New Fortress Energy's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
The Williams Companies | $8.20 billion | 3.35 | $850 million | $0.99 | 22.84 |
New Fortress Energy | $189.13 million | 42.48 | $-33,810,000.00 | ($1.62) | -28.46 |
The Williams Companies has higher revenue and earnings than New Fortress Energy. New Fortress Energy is trading at a lower price-to-earnings ratio than The Williams Companies, indicating that it is currently the more affordable of the two stocks.
Dividends
The Williams Companies pays an annual dividend of $1.60 per share and has a dividend yield of 7.1%. New Fortress Energy pays an annual dividend of $0.40 per share and has a dividend yield of 0.9%. The Williams Companies pays out 161.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. New Fortress Energy pays out -24.7% of its earnings in the form of a dividend. The Williams Companies has raised its dividend for 1 consecutive years and New Fortress Energy has raised its dividend for 1 consecutive years.
Volatility and Risk
The Williams Companies has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500. Comparatively, New Fortress Energy has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500.
Profitability
This table compares The Williams Companies and New Fortress Energy's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
The Williams Companies | 1.86% | 7.77% | 2.70% |
New Fortress Energy | -50.42% | -17.68% | -3.09% |
Insider & Institutional Ownership
83.6% of The Williams Companies shares are owned by institutional investors. Comparatively, 38.5% of New Fortress Energy shares are owned by institutional investors. 0.3% of The Williams Companies shares are owned by insiders. Comparatively, 89.6% of New Fortress Energy shares are owned 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.
Summary
The Williams Companies beats New Fortress Energy on 13 of the 16 factors compared between the two stocks.