The price-to-earnings ratio is probably the most common metric that investors and analysts tend to follow. Here is how the five stocks stack up on a trailing twelve month (TTM) basis.

• Williams Companies (WMB): 6.03
• Microsoft (MSFT): 10.40
• Apple (AAPL): 15.83
• Google (GOOG): 23.11
• Berkshire Hathaway (BRK.B): 30.04

Here Williams stands out, and its P/E in comparison to it's industry is about half.

Many value investors choose to look at the price-to-sales ratio as a more reliable metric than the P/E over long periods, because gross earnings are harder to reshape than net earnings, given how accountants and companies are prone to play with the numbers.

• Williams Companies (WMB): 0.69
• Berkshire Hathaway (BRK.B): 1.39
• Apple (AAPL): 2.37
• Microsoft (MSFT): 3.05
• Google (GOOG): 5.55

Williams remains the clear winner using this criteria and Berkshire is a very worthy second.

All of these companies have strong balance sheets with plenty of cash on hand, solid management, and strong leadership. The next metric we will look at is cash flow. These companies have nothing to worry about in this regard, but as an investor what would you pay for that position. The following lists the price-to-cash flow ratio.

• Williams Companies (WMB): 2.35
• Microsoft (MSFT): 7.98
• Berkshire Hathaway (BRK.B): 18.03
• Google (GOOG): 18.67
• Apple (AAPL): 20.05

Once again Williams is the undisputed bargain using a very important valuation criteria.

Tomorrow I will continue to add more criteria and context to the stock review, but for now I would add an advantage that Williams has that some investors may think is important and some may not. It depends on your time horizon and your investing style.

The Williams Company can remain strong and valuable without inventing anything or fear of competition because it is the sole provider in a geographic area with a growing populous in an industry that is well established. Apple, Google, and Microsoft all have plenty of competition and must reinvent themselves constantly for fear of someone else coming up with a better idea or product. Berkshire does not have this problem, but its growth is affected greatly by its size and lack of focus. Many would view it as being similar to a high-quality index fund.

Previous post: Serious Money: Better than Apple, Google, Microsoft & Berkshire Hathaway, Part 1

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of BRK.B and WMB shares and options.