We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MPLX vs. WMB: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors with an interest in Oil and Gas - Production and Pipelines stocks have likely encountered both MPLX LP (MPLX - Free Report) and Williams Companies, Inc. (The) (WMB - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, both MPLX LP and Williams Companies, Inc. (The) are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
MPLX currently has a forward P/E ratio of 10.43, while WMB has a forward P/E of 23.80. We also note that MPLX has a PEG ratio of 2.09. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. WMB currently has a PEG ratio of 6.92.
Another notable valuation metric for MPLX is its P/B ratio of 3.25. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, WMB has a P/B of 3.48.
Based on these metrics and many more, MPLX holds a Value grade of B, while WMB has a Value grade of C.
Both MPLX and WMB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MPLX is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
MPLX vs. WMB: Which Stock Is the Better Value Option?
Investors with an interest in Oil and Gas - Production and Pipelines stocks have likely encountered both MPLX LP (MPLX - Free Report) and Williams Companies, Inc. (The) (WMB - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, both MPLX LP and Williams Companies, Inc. (The) are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
MPLX currently has a forward P/E ratio of 10.43, while WMB has a forward P/E of 23.80. We also note that MPLX has a PEG ratio of 2.09. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. WMB currently has a PEG ratio of 6.92.
Another notable valuation metric for MPLX is its P/B ratio of 3.25. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, WMB has a P/B of 3.48.
Based on these metrics and many more, MPLX holds a Value grade of B, while WMB has a Value grade of C.
Both MPLX and WMB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MPLX is the superior value option right now.