WallStSmart

Hess Midstream Partners LP (HESM)vsWilliams Companies Inc (WMB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Williams Companies Inc generates 663% more annual revenue ($12.32B vs $1.61B). WMB leads profitability with a 24.9% profit margin vs 23.2%. HESM appears more attractively valued with a PEG of 1.57. WMB earns a higher WallStSmart Score of 69/100 (B-).

HESM

Buy

58

out of 100

Grade: C

Growth: 4.0Profit: 9.0Value: 4.7Quality: 3.8
Piotroski: 5/9

WMB

Strong Buy

69

out of 100

Grade: B-

Growth: 6.7Profit: 8.0Value: 5.0Quality: 3.0
Piotroski: 5/9Altman Z: 0.34
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HESMSignificantly Overvalued (-15.4%)

Margin of Safety

-15.4%

Fair Value

$31.55

Current Price

$38.78

$7.23 premium

UndervaluedFair: $31.55Overvalued

Intrinsic value data unavailable for WMB.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HESM4 strengths · Avg: 9.3/10
Return on EquityProfitability
71.2%10/10

Every $100 of equity generates 71 in profit

Operating MarginProfitability
63.5%10/10

Strong operational efficiency at 63.5%

Profit MarginProfitability
23.2%9/10

Keeps 23 of every $100 in revenue as profit

P/E RatioValuation
13.7x8/10

Attractively priced relative to earnings

WMB5 strengths · Avg: 9.4/10
Operating MarginProfitability
39.5%10/10

Strong operational efficiency at 39.5%

EPS GrowthGrowth
51.2%10/10

Earnings expanding 51.2% YoY

Market CapQuality
$89.11B9/10

Large-cap with strong market position

Return on EquityProfitability
23.3%9/10

Every $100 of equity generates 23 in profit

Profit MarginProfitability
24.9%9/10

Keeps 25 of every $100 in revenue as profit

Areas to Watch

HESM4 concerns · Avg: 3.5/10
PEG RatioValuation
1.574/10

Expensive relative to growth rate

Price/BookValuation
9.7x4/10

Trading at 9.7x book value

EPS GrowthGrowth
1.4%4/10

1.4% earnings growth

Revenue GrowthGrowth
-3.7%2/10

Revenue declined 3.7%

WMB4 concerns · Avg: 3.0/10
PEG RatioValuation
2.074/10

Expensive relative to growth rate

P/E RatioValuation
29.0x4/10

Moderate valuation

Free Cash FlowQuality
$-458.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.342/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : HESM

The strongest argument for HESM centers on Return on Equity, Operating Margin, Profit Margin. Profitability is solid with margins at 23.2% and operating margin at 63.5%.

Bull Case : WMB

The strongest argument for WMB centers on Operating Margin, EPS Growth, Market Cap. Profitability is solid with margins at 24.9% and operating margin at 39.5%.

Bear Case : HESM

The primary concerns for HESM are PEG Ratio, Price/Book, EPS Growth. Debt-to-equity of 7.15 is elevated, increasing financial risk.

Bear Case : WMB

The primary concerns for WMB are PEG Ratio, P/E Ratio, Free Cash Flow. Debt-to-equity of 2.33 is elevated, increasing financial risk.

Key Dynamics to Monitor

HESM profiles as a declining stock while WMB is a mature play — different risk/reward profiles.

WMB carries more volatility with a beta of 0.62 — expect wider price swings.

WMB is growing revenue faster at 7.8% — sustainability is the question.

HESM generates stronger free cash flow (256M), providing more financial flexibility.

Bottom Line

WMB scores higher overall (69/100 vs 58/100), backed by strong 24.9% margins. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Hess Midstream Partners LP

ENERGY · OIL & GAS MIDSTREAM · USA

Hess Midstream LP owns, develops, operates and acquires midstream assets. The company is headquartered in Houston, Texas.

Visit Website →

Williams Companies Inc

ENERGY · OIL & GAS MIDSTREAM · USA

The Williams Companies, Inc., is an American energy company based in Tulsa, Oklahoma. Its core business is natural gas processing and transportation, with additional petroleum and electricity generation assets.

Want to dig deeper into these stocks?