Plains All American Pipeline LP (PAA)vsWilliams Companies Inc (WMB)
PAA
Plains All American Pipeline LP
$22.92
-2.23%
ENERGY · Cap: $15.83B
WMB
Williams Companies Inc
$72.42
-0.82%
ENERGY · Cap: $87.21B
Smart Verdict
WallStSmart Research — data-driven comparison
Plains All American Pipeline LP generates 274% more annual revenue ($45.26B vs $12.11B). WMB leads profitability with a 23.1% profit margin vs 2.5%. WMB appears more attractively valued with a PEG of 2.17. WMB earns a higher WallStSmart Score of 65/100 (C+).
PAA
Hold50
out of 100
Grade: D+
WMB
Buy65
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 33.6%
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Keeps 23 of every $100 in revenue as profit
Earnings expanding 25.0% YoY
Areas to Watch
Expensive relative to growth rate
2.5% margin — thin
Operating margin of 2.8%
Elevated debt levels
Expensive relative to growth rate
Premium valuation, high expectations priced in
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : PAA
The strongest argument for PAA centers on Price/Book.
Bull Case : WMB
The strongest argument for WMB centers on Operating Margin, Market Cap, Return on Equity. Profitability is solid with margins at 23.1% and operating margin at 33.6%.
Bear Case : PAA
The primary concerns for PAA are PEG Ratio, Profit Margin, Operating Margin. Thin 2.5% margins leave little buffer for downturns.
Bear Case : WMB
The primary concerns for WMB are PEG Ratio, P/E Ratio, Altman Z-Score. Debt-to-equity of 2.33 is elevated, increasing financial risk.
Key Dynamics to Monitor
PAA profiles as a value stock while WMB is a mature play — different risk/reward profiles.
WMB carries more volatility with a beta of 0.63 — expect wider price swings.
WMB is growing revenue faster at 9.0% — sustainability is the question.
PAA generates stronger free cash flow (288M), providing more financial flexibility.
Bottom Line
WMB scores higher overall (65/100 vs 50/100), backed by strong 23.1% margins. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Plains All American Pipeline LP
ENERGY · OIL & GAS MIDSTREAM · USA
Plains All American Pipeline, LP, is engaged in the transportation, completion, storage and collection of crude oil and natural gas liquids (NGL) through pipelines in the United States and Canada. The company is headquartered in Houston, Texas.
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.
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