Cheniere Energy vs Williams Companies: Which Is the Stronger Buy Today?
Even as Williams Companies fell -5.2% during the past Day, its peer Cheniere Energy may be a better choice. Consistently evaluating alternatives is core to sound investment approach. Cheniere Energy (LNG) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Williams Companies (WMB) stock, suggesting you may be better off investing in LNG
- LNG’s quarterly revenue growth was 42.8%, vs. WMB’s 19.0%.
- In addition, its Last 12 Months revenue growth came in at 10.9%, ahead of WMB’s 7.4%.
- LNG leads on profitability over both periods – LTM margin of 37.6% and 3-year average of 44.5%.
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WMB operates extensive pipelines, processing, and fractionation facilities, with substantial NGL storage, across multiple regional segments in the natural gas and NGL industry. LNG operates U.S. liquefied natural gas terminals, including Sabine Pass and Corpus Christi, providing LNG-related services since 1983.
Valuation & Performance Overview
| WMB | LNG | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 19.6 | 7.1 | LNG |
| Revenue Growth | |||
| Last Quarter | 19.0% | 42.8% | LNG |
| Last 12 Months | 7.4% | 10.9% | LNG |
| Last 3 Year Average | 1.8% | -5.6% | WMB |
| Operating Margins | |||
| Last 12 Months | 32.7% | 37.6% | LNG |
| Last 3 Year Average | 34.5% | 44.5% | LNG |
| Momentum | |||
| Last 3 Year Return | 114.5% | 29.8% | WMB |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: WMB Revenue Comparison | LNG Revenue Comparison
See more margin details: WMB Operating Income Comparison | LNG Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell LNG Stock to see if Cheniere Energy’s edge holds up under the hood or if Williams Companies still has cards to play (see Buy or Sell WMB Stock).
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| WMB Return | -8% | 38% | 33% | 12% | 62% | 18% | 263% | ||
| LNG Return | -2% | 69% | 49% | 15% | 27% | 4% | 273% | <=== | |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 15% | 106% | ||
| Monthly Win Rates [3] | |||||||||
| WMB Win Rate | 42% | 67% | 67% | 58% | 75% | 67% | 62% | ||
| LNG Win Rate | 58% | 83% | 67% | 75% | 58% | 67% | 68% | <=== | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 67% | 64% | ||
| Max Drawdowns [4] | |||||||||
| WMB Max Drawdown | -60% | 0% | 0% | -13% | -5% | -0% | -13% | ||
| LNG Max Drawdown | -51% | -2% | 0% | -8% | -10% | -8% | -13% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 10/23/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read LNG Dip Buyer Analyses and WMB Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.