WallStSmart

Permian Basin Royalty Trust (PBT)vsWilliams Companies Inc (WMB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Williams Companies Inc generates 68415% more annual revenue ($11.83B vs $17.27M). PBT leads profitability with a 88.5% profit margin vs 22.1%. PBT appears more attractively valued with a PEG of 1.12. WMB earns a higher WallStSmart Score of 67/100 (B-).

PBT

Buy

51

out of 100

Grade: C-

Growth: 4.7Profit: 8.5Value: 4.7Quality: 5.0
Piotroski: 5/9

WMB

Strong Buy

67

out of 100

Grade: B-

Growth: 6.7Profit: 8.0Value: 9.3Quality: 3.3
Piotroski: 3/9Altman Z: 0.37
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PBTSignificantly Overvalued (-755.4%)

Margin of Safety

-755.4%

Fair Value

$2.24

Current Price

$22.02

$19.78 premium

UndervaluedFair: $2.24Overvalued
WMBUndervalued (+29.0%)

Margin of Safety

+29.0%

Fair Value

$100.15

Current Price

$73.81

$26.34 discount

UndervaluedFair: $100.15Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PBT3 strengths · Avg: 10.0/10
Return on EquityProfitability
87.8%10/10

Every $100 of equity generates 88 in profit

Profit MarginProfitability
88.5%10/10

Keeps 89 of every $100 in revenue as profit

Operating MarginProfitability
94.3%10/10

Strong operational efficiency at 94.3%

WMB4 strengths · Avg: 9.5/10
Operating MarginProfitability
41.2%10/10

Strong operational efficiency at 41.2%

EPS GrowthGrowth
50.8%10/10

Earnings expanding 50.8% YoY

Market CapQuality
$90.96B9/10

Large-cap with strong market position

Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Areas to Watch

PBT4 concerns · Avg: 2.3/10
Market CapQuality
$979.25M3/10

Smaller company, higher risk/reward

P/E RatioValuation
63.7x2/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
-13.6%2/10

Revenue declined 13.6%

EPS GrowthGrowth
-14.8%2/10

Earnings declined 14.8%

WMB4 concerns · Avg: 3.3/10
PEG RatioValuation
2.474/10

Expensive relative to growth rate

P/E RatioValuation
34.8x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-485.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : PBT

The strongest argument for PBT centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 88.5% and operating margin at 94.3%. PEG of 1.12 suggests the stock is reasonably priced for its growth.

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 : PBT

The primary concerns for PBT are Market Cap, P/E Ratio, Revenue Growth. A P/E of 63.7x leaves little room for execution misses.

Bear Case : WMB

The primary concerns for WMB are PEG Ratio, P/E Ratio, Piotroski F-Score.

Key Dynamics to Monitor

PBT profiles as a declining 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.

PBT generates stronger free cash flow (12M), providing more financial flexibility.

Bottom Line

WMB scores higher overall (67/100 vs 51/100), backed by strong 22.1% 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.

Permian Basin Royalty Trust

ENERGY · OIL & GAS MIDSTREAM · USA

The Permian Basin Royalty Trust, an express trust, holds primary royalty interests in various oil and gas properties in the United States. The company is headquartered in Dallas, Texas.

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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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