Williams Companies, Inc. (The) (NYSE: WMB) and Blueknight Energy Partners L.P., L.L.C. (NASDAQ:BKEP) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitabiliy and institutional ownership.

Dividends

Williams Companies, Inc. (The) pays an annual dividend of $1.20 per share and has a dividend yield of 3.9%. Blueknight Energy Partners L.P., L.L.C. pays an annual dividend of $0.58 per share and has a dividend yield of 10.0%. Williams Companies, Inc. (The) pays out 196.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Blueknight Energy Partners L.P., L.L.C. pays out -446.2% of its earnings in the form of a dividend. Blueknight Energy Partners L.P., L.L.C. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Williams Companies, Inc. (The) and Blueknight Energy Partners L.P., L.L.C.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Williams Companies, Inc. (The) $7.83 billion 3.27 $3.58 billion $0.61 50.85
Blueknight Energy Partners L.P., L.L.C. $183.18 million 1.21 $65.73 million ($0.13) -44.62

Williams Companies, Inc. (The) has higher revenue and earnings than Blueknight Energy Partners L.P., L.L.C.. Blueknight Energy Partners L.P., L.L.C. is trading at a lower price-to-earnings ratio than Williams Companies, Inc. (The), indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Williams Companies, Inc. (The) has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, Blueknight Energy Partners L.P., L.L.C. has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.

Profitability

This table compares Williams Companies, Inc. (The) and Blueknight Energy Partners L.P., L.L.C.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Williams Companies, Inc. (The) 6.24% 3.43% 1.06%
Blueknight Energy Partners L.P., L.L.C. 12.71% -12.45% 7.23%

Analyst Ratings

This is a breakdown of current ratings and price targets for Williams Companies, Inc. (The) and Blueknight Energy Partners L.P., L.L.C., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Williams Companies, Inc. (The) 0 3 10 1 2.86
Blueknight Energy Partners L.P., L.L.C. 0 0 1 0 3.00

Williams Companies, Inc. (The) presently has a consensus price target of $33.92, suggesting a potential upside of 9.34%. Blueknight Energy Partners L.P., L.L.C. has a consensus price target of $7.20, suggesting a potential upside of 24.14%. Given Blueknight Energy Partners L.P., L.L.C.’s stronger consensus rating and higher possible upside, analysts plainly believe Blueknight Energy Partners L.P., L.L.C. is more favorable than Williams Companies, Inc. (The).

Institutional & Insider Ownership

84.3% of Williams Companies, Inc. (The) shares are owned by institutional investors. Comparatively, 59.7% of Blueknight Energy Partners L.P., L.L.C. shares are owned by institutional investors. 0.5% of Williams Companies, Inc. (The) shares are owned by company insiders. Comparatively, 1.7% of Blueknight Energy Partners L.P., L.L.C. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Williams Companies, Inc. (The) beats Blueknight Energy Partners L.P., L.L.C. on 9 of the 16 factors compared between the two stocks.

Williams Companies, Inc. (The) Company Profile

The Williams Companies, Inc. is an energy infrastructure company. The Company is focused on connecting North America’s hydrocarbon resource plays to markets for natural gas, natural gas liquids (NGL), and olefins. As of December 31, 2016, its interstate gas pipelines, midstream and olefins production interests were held through its investment in Williams Partners L.P. (WPZ). The Company’s segments include Williams Partners, Williams NGL & Petchem Services and Other. The Williams Partners segment includes its consolidated master limited partnership, WPZ. The gas pipeline business includes interstate natural gas pipelines and pipeline joint project investments. The midstream business provides natural gas gathering, treating, processing and compression services. The Williams NGL & Petchem Services segment includes its Texas Belle pipeline and certain other domestic olefins pipeline assets. Other segment includes its corporate operations and Canadian construction services company.

Blueknight Energy Partners L.P., L.L.C. Company Profile

Blueknight Energy Partners, L.P. is a master limited partnership company. The Company manages its operations through four segments: asphalt terminaling services, crude oil terminaling and storage services, crude oil pipeline services, and crude oil trucking and producer field services. Asphalt terminaling services segment operations generally consist of fee based activities associated with providing storage, terminaling and throughput services for asphalt product and residual fuel oil. Crude oil terminaling and storage segment operations generally consist of fee based activities associated with providing storage, terminaling, and throughput services for crude oil. Crude oil pipeline services segment operations generally consist of fee-based activity associated with transporting crude oil products on pipelines. Crude oil trucking and producer field services segment operations generally consist of fee-based activity associated with transporting crude oil products on trucks.

Receive News & Ratings for Williams Companies Inc. (The) Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Williams Companies Inc. (The) and related companies with MarketBeat.com's FREE daily email newsletter.