Boardwalk Pipeline Partners L.P. (NYSE: BWP) and ONEOK Partners, L.P. (NYSE:OKS) are both mid-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitabiliy and valuation.

Analyst Ratings

This is a summary of current recommendations for Boardwalk Pipeline Partners L.P. and ONEOK Partners, L.P., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Boardwalk Pipeline Partners L.P. 1 3 2 0 2.17
ONEOK Partners, L.P. 0 12 3 0 2.20

Boardwalk Pipeline Partners L.P. presently has a consensus price target of $21.60, indicating a potential upside of 23.57%. ONEOK Partners, L.P. has a consensus price target of $46.77, indicating a potential downside of 6.61%. Given Boardwalk Pipeline Partners L.P.’s higher possible upside, research analysts plainly believe Boardwalk Pipeline Partners L.P. is more favorable than ONEOK Partners, L.P..

Risk and Volatility

Boardwalk Pipeline Partners L.P. has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, ONEOK Partners, L.P. has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Profitability

This table compares Boardwalk Pipeline Partners L.P. and ONEOK Partners, L.P.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Boardwalk Pipeline Partners L.P. 24.11% 7.10% 3.71%
ONEOK Partners, L.P. 10.94% 17.53% 7.06%

Earnings & Valuation

This table compares Boardwalk Pipeline Partners L.P. and ONEOK Partners, L.P.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Boardwalk Pipeline Partners L.P. $1.33 billion 3.29 $823.80 million $1.27 13.76
ONEOK Partners, L.P. $9.89 billion 1.45 $1.71 billion $2.30 21.77

ONEOK Partners, L.P. has higher revenue and earnings than Boardwalk Pipeline Partners L.P.. Boardwalk Pipeline Partners L.P. is trading at a lower price-to-earnings ratio than ONEOK Partners, L.P., indicating that it is currently the more affordable of the two stocks.

Dividends

Boardwalk Pipeline Partners L.P. pays an annual dividend of $0.40 per share and has a dividend yield of 2.3%. ONEOK Partners, L.P. pays an annual dividend of $3.16 per share and has a dividend yield of 6.3%. Boardwalk Pipeline Partners L.P. pays out 31.5% of its earnings in the form of a dividend. ONEOK Partners, L.P. pays out 137.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional & Insider Ownership

99.1% of Boardwalk Pipeline Partners L.P. shares are held by institutional investors. Comparatively, 41.2% of ONEOK Partners, L.P. shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

ONEOK Partners, L.P. beats Boardwalk Pipeline Partners L.P. on 9 of the 15 factors compared between the two stocks.

About Boardwalk Pipeline Partners L.P.

Boardwalk Pipeline Partners, LP is a limited partnership company. The Company’s business includes integrated natural gas and natural gas liquids, and other hydrocarbons (referred to together as NGLs) pipeline and storage systems. The Company is engaged in the operation of interstate natural gas and NGLs pipeline systems, and integrated storage facilities, including interstate natural gas pipeline systems located in the Gulf Coast region, Oklahoma, Arkansas and the Midwestern states of Tennessee, Kentucky, Illinois, Indiana and Ohio, and its NGLs pipelines and storage facilities in Louisiana and Texas. The Company conducts business through its subsidiary, Boardwalk Pipelines, LP (Boardwalk Pipelines), and its subsidiaries, Gulf South Pipeline Company, LP, Texas Gas Transmission, LLC, Gulf Crossing Pipeline Company LLC, Boardwalk Louisiana Midstream, LLC, Boardwalk Petrochemical Pipeline, LLC and Boardwalk Field Services, LLC.

About ONEOK Partners, L.P.

ONEOK Partners, L.P. is engaged in gathering, processing, storage and transportation of natural gas in the United States. In addition, the Company owns natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions. It operates through three segments: Natural Gas Gathering and Processing, Natural Gas Liquids, and Natural Gas Pipelines. The Natural Gas Gathering and Processing segment provides midstream services to contracted producers in North Dakota, Montana, Wyoming, Kansas and Oklahoma. Its Natural Gas Liquids segment owned and operated facilities that gathered, fractionated, treated and distributed NGLs and store NGL products, in Oklahoma, Kansas, Texas, New Mexico and the Rocky Mountain region where it provided midstream services to producers of NGLs and delivered those products to the two primary market centers, one in the Mid-Continent in Conway, and the other in the Gulf Coast in Mont Belvieu, Texas, as of December 31, 2016.

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