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

Earnings & Valuation

This table compares Antero Midstream Partners and ONEOK Partners, L.P.’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Antero Midstream Partners $625.05 million 9.08 $409.52 million $1.36 22.46
ONEOK Partners, L.P. $9.89 billion 1.40 $1.71 billion $2.30 21.01

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

Dividends

Antero Midstream Partners pays an annual dividend of $1.20 per share and has a dividend yield of 3.9%. ONEOK Partners, L.P. pays an annual dividend of $3.16 per share and has a dividend yield of 6.5%. Antero Midstream Partners pays out 88.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.

Insider & Institutional Ownership

46.6% of Antero Midstream Partners shares are held by institutional investors. Comparatively, 41.2% of ONEOK Partners, L.P. shares are held by institutional investors. 7.9% of Antero Midstream Partners shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Antero Midstream Partners has a beta of 1.96, suggesting that its share price is 96% more volatile than the S&P 500. Comparatively, ONEOK Partners, L.P. has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Antero Midstream Partners 38.95% 19.78% 10.55%
ONEOK Partners, L.P. 10.94% 17.53% 7.06%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Antero Midstream Partners and ONEOK Partners, L.P., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Antero Midstream Partners 0 0 12 0 3.00
ONEOK Partners, L.P. 0 12 3 0 2.20

Antero Midstream Partners currently has a consensus price target of $39.67, suggesting a potential upside of 29.84%. ONEOK Partners, L.P. has a consensus price target of $46.77, suggesting a potential downside of 3.23%. Given Antero Midstream Partners’ stronger consensus rating and higher possible upside, analysts plainly believe Antero Midstream Partners is more favorable than ONEOK Partners, L.P..

Summary

Antero Midstream Partners beats ONEOK Partners, L.P. on 12 of the 16 factors compared between the two stocks.

About Antero Midstream Partners

Antero Midstream Partners LP is a limited partnership formed by Antero Resources Corporation (Antero Resources) to own, operate and develop midstream energy assets to service Antero Resources’ production. The Company’s segments include gathering and compression, and water handling and treatment. The gathering and compression segment includes a network of gathering pipelines, compressor stations, and processing and fractionation plants that collect and process natural gas, natural gas liquids (NGLs) and oil from Antero Resources’ wells in West Virginia and Ohio. Its water handling and treatment segment includes two independent fresh water distribution systems from sources including the Ohio River, local reservoirs, as well as several regional waterways. The water handling and treatment segment also includes other fluid handling services which includes, high rate transfer, wastewater transportation, disposal and treatment.

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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