Plains All American Pipeline LP (PAA)vsWilliams Companies Inc (WMB)
PAA
Plains All American Pipeline LP
$22.15
-0.32%
ENERGY · Cap: $15.68B
WMB
Williams Companies Inc
$73.81
-0.87%
ENERGY · Cap: $90.96B
Smart Verdict
WallStSmart Research — data-driven comparison
Plains All American Pipeline LP generates 274% more annual revenue ($44.26B vs $11.83B). WMB leads profitability with a 22.1% profit margin vs 3.2%. PAA appears more attractively valued with a PEG of 2.35. WMB earns a higher WallStSmart Score of 67/100 (B-).
PAA
Buy56
out of 100
Grade: C
WMB
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+62.3%
Fair Value
$52.42
Current Price
$22.15
$30.27 discount
Margin of Safety
+29.0%
Fair Value
$100.15
Current Price
$73.81
$26.34 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 145.8% YoY
Reasonable price relative to book value
Strong operational efficiency at 41.2%
Earnings expanding 50.8% YoY
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
3.2% margin — thin
Operating margin of 3.5%
Revenue declined 12.2%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : PAA
The strongest argument for PAA centers on EPS Growth, Price/Book.
Bull Case : WMB
The strongest argument for WMB centers on Operating Margin, EPS Growth, Market Cap. Profitability is solid with margins at 22.1% and operating margin at 41.2%.
Bear Case : PAA
The primary concerns for PAA are PEG Ratio, Profit Margin, Operating Margin. Thin 3.2% margins leave little buffer for downturns.
Bear Case : WMB
The primary concerns for WMB are PEG Ratio, P/E Ratio, Piotroski F-Score.
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 0.65 — expect wider price swings.
WMB is growing revenue faster at 8.7% — sustainability is the question.
PAA generates stronger free cash flow (637M), providing more financial flexibility.
Bottom Line
WMB scores higher overall (67/100 vs 56/100), backed by strong 22.1% margins. PAA offers better value entry with a 62.3% margin of safety. 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.
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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