WMB vs. PAA
WMB (The Williams Companies, Inc.) and PAA (Plains All American Pipeline, L.P.) are both stocks. Both operate in the Oil & Gas Midstream industry within the Energy sector. Over the past 10 years, WMB returned 18.64%/yr vs 5.94%/yr for PAA. At a 0.43 correlation, their price movements are largely independent.
Performance
WMB vs. PAA - Performance Comparison
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Returns By Period
In the year-to-date period, WMB achieves a 19.95% return, which is significantly lower than PAA's 32.09% return. Over the past 10 years, WMB has outperformed PAA with an annualized return of 18.64%, while PAA has yielded a comparatively lower 5.94% annualized return.
WMB
- 1D
- -0.51%
- 1M
- -0.51%
- YTD
- 19.95%
- 6M
- 17.36%
- 1Y
- 22.09%
- 3Y*
- 38.06%
- 5Y*
- 26.38%
- 10Y*
- 18.64%
PAA
- 1D
- 0.88%
- 1M
- 4.97%
- YTD
- 32.09%
- 6M
- 35.41%
- 1Y
- 42.03%
- 3Y*
- 29.12%
- 5Y*
- 22.64%
- 10Y*
- 5.94%
WMB vs. PAA - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
WMB The Williams Companies, Inc. | 19.95% | 14.91% | 62.35% | 11.86% | 32.83% | 38.36% | -8.20% | 14.18% | -23.88% | 2.02% |
PAA Plains All American Pipeline, L.P. | 32.09% | 14.30% | 21.38% | 39.18% | 35.79% | 22.24% | -50.79% | -2.28% | 2.31% | -31.34% |
Correlation
The correlation between WMB and PAA is 0.43, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.43 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.51 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.61 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.60 |
Correlation (All Time) Calculated using the full available price history since Nov 19, 1998 | 0.43 |
The correlation between WMB and PAA shifts across timeframes, from 0.43 (all time) to 0.61 (5 years), reflecting how their relationship changes across market environments.
Fundamentals
WMB:
$87.55B
PAA:
$16.10B
WMB:
$2.28
PAA:
$2.19
WMB:
31.34
PAA:
10.41
WMB:
1.63
PAA:
0.19
WMB:
7.34
PAA:
0.36
WMB:
6.76
PAA:
1.26
WMB:
$11.92B
PAA:
$45.25B
WMB:
$7.49B
PAA:
$1.55B
WMB:
$6.88B
PAA:
$2.54B
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Return for Risk
WMB vs. PAA — Risk / Return Rank
WMB
PAA
WMB vs. PAA - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for The Williams Companies, Inc. (WMB) and Plains All American Pipeline, L.P. (PAA). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| WMB | PAA | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.33 | ||
| Sortino ratioReturn per unit of downside risk | -1.71 | ||
| Omega ratioGain probability vs. loss probability | 1.18 | 1.38 | -0.20 |
| Calmar ratioReturn relative to maximum drawdown | 1.79 | 2.91 | -1.11 |
| Martin ratioReturn relative to average drawdown | 3.88 | 8.41 | -4.53 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| WMB | PAA | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.96 | 2.29 | -1.33 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.12 | 0.85 | +0.27 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.60 | 0.14 | +0.46 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.23 | 0.31 | -0.07 |
Drawdowns
WMB vs. PAA - Drawdown Comparison
The maximum WMB drawdown since its inception was -98.03%, which is greater than PAA's maximum drawdown of -91.99%. Use the drawdown chart below to compare losses from any high point for WMB and PAA.
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Drawdown Indicators
| WMB | PAA | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -98.03% | -91.99% | -6.04% |
Max Drawdown (1Y)Largest decline over 1 year | -12.36% | -14.53% | +2.17% |
Max Drawdown (3Y)Largest decline over 3 years | -12.36% | -22.26% | +9.90% |
Max Drawdown (5Y)Largest decline over 5 years | -23.01% | -26.11% | +3.10% |
Max Drawdown (10Y)Largest decline over 10 years | -68.08% | -87.92% | +19.84% |
Current DrawdownCurrent decline from peak | -9.84% | -8.58% | -1.26% |
Average DrawdownAverage peak-to-trough decline | -27.08% | -25.77% | -1.31% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.71% | 5.01% | +0.70% |
Volatility
WMB vs. PAA - Volatility Comparison
The Williams Companies, Inc. (WMB) has a higher volatility of 8.07% compared to Plains All American Pipeline, L.P. (PAA) at 7.29%. This indicates that WMB's price experiences larger fluctuations and is considered to be riskier than PAA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| WMB | PAA | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.07% | 7.29% | +0.78% |
Volatility (6M)Calculated over the trailing 6-month period | 15.75% | 14.05% | +1.70% |
Volatility (1Y)Calculated over the trailing 1-year period | 23.07% | 18.45% | +4.62% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 23.62% | 26.80% | -3.18% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 31.00% | 41.83% | -10.83% |
Dividends
WMB vs. PAA - Dividend Comparison
WMB's dividend yield for the trailing twelve months is around 2.83%, less than PAA's 7.00% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PAA Plains All American Pipeline, L.P. | 7.00% | 8.46% | 7.44% | 7.06% | 7.08% | 7.71% | 10.92% | 7.50% | 5.99% | 9.45% | 8.21% | 11.93% |
WMB The Williams Companies, Inc. | 2.83% | 3.33% | 3.51% | 5.14% | 5.17% | 6.30% | 7.98% | 6.41% | 6.17% | 3.94% | 5.39% | 9.53% |
Financials
WMB vs. PAA - Financials Comparison
This section allows you to compare key financial metrics between The Williams Companies, Inc. and Plains All American Pipeline, L.P.. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
WMB vs. PAA - Profitability Comparison
WMB - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, The Williams Companies, Inc. reported a gross profit of 2.49B and revenue of 3.03B. Therefore, the gross margin over that period was 82.1%.
PAA - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Plains All American Pipeline, L.P. reported a gross profit of 0.00 and revenue of 12.47B. Therefore, the gross margin over that period was 0.0%.
WMB - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, The Williams Companies, Inc. reported an operating income of 1.32B and revenue of 3.03B, resulting in an operating margin of 43.6%.
PAA - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Plains All American Pipeline, L.P. reported an operating income of 405.00M and revenue of 12.47B, resulting in an operating margin of 3.3%.
WMB - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, The Williams Companies, Inc. reported a net income of 865.00M and revenue of 3.03B, resulting in a net margin of 28.6%.
PAA - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Plains All American Pipeline, L.P. reported a net income of 551.00M and revenue of 12.47B, resulting in a net margin of 4.4%.
Frequently Asked Questions
WMB and PAA have a correlation of 0.43, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
WMB has higher volatility (8.07%) compared to PAA (7.29%). In terms of maximum drawdown, WMB dropped -98.03% vs PAA's -91.99%.
PAA currently has the higher Sharpe Ratio (2.29 vs 0.96), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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