ONEOK Partners, L.P. (NYSE: OKS) and Energy Transfer Equity, L.P. (NYSE:ETE) are both large-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitabiliy, institutional ownership, risk and valuation.

Insider and Institutional Ownership

41.2% of ONEOK Partners, L.P. shares are owned by institutional investors. Comparatively, 50.8% of Energy Transfer Equity, L.P. shares are owned by institutional investors. 3.3% of Energy Transfer Equity, L.P. shares are owned by insiders. 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.

Risk & Volatility

ONEOK Partners, L.P. has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Energy Transfer Equity, L.P. has a beta of 1.91, suggesting that its share price is 91% more volatile than the S&P 500.

Profitability

This table compares ONEOK Partners, L.P. and Energy Transfer Equity, L.P.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ONEOK Partners, L.P. 10.94% 17.53% 7.06%
Energy Transfer Equity, L.P. 2.24% 4.02% 1.21%

Dividends

ONEOK Partners, L.P. pays an annual dividend of $3.16 per share and has a dividend yield of 6.2%. Energy Transfer Equity, L.P. pays an annual dividend of $1.14 per share and has a dividend yield of 6.4%. 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. Energy Transfer Equity, L.P. pays out 135.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Energy Transfer Equity, L.P. has increased its dividend for 4 consecutive years. Energy Transfer Equity, L.P. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares ONEOK Partners, L.P. and Energy Transfer Equity, L.P.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ONEOK Partners, L.P. $9.89 billion 1.48 $1.71 billion $2.30 22.20
Energy Transfer Equity, L.P. $41.06 billion 0.47 $5.47 billion $0.84 21.13

Energy Transfer Equity, L.P. has higher revenue and earnings than ONEOK Partners, L.P.. Energy Transfer Equity, 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for ONEOK Partners, L.P. and Energy Transfer Equity, L.P., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ONEOK Partners, L.P. 0 12 2 0 2.14
Energy Transfer Equity, L.P. 0 6 9 0 2.60

ONEOK Partners, L.P. presently has a consensus target price of $46.92, indicating a potential downside of 8.13%. Energy Transfer Equity, L.P. has a consensus target price of $20.36, indicating a potential upside of 14.69%. Given Energy Transfer Equity, L.P.’s stronger consensus rating and higher possible upside, analysts clearly believe Energy Transfer Equity, L.P. is more favorable than ONEOK Partners, L.P..

Summary

Energy Transfer Equity, L.P. beats ONEOK Partners, L.P. on 11 of the 17 factors compared between the two stocks.

ONEOK Partners, L.P. Company Profile

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.

Energy Transfer Equity, L.P. Company Profile

Energy Transfer Equity, L.P. (ETE) owns equity interests in Energy Transfer Partners, L.P. (ETP) and Sunoco LP, which are engaged in diversified energy-related services. The Company’s segments include Investment in ETP, including the consolidated operations of ETP; Investment in Sunoco LP, including the consolidated operations of Sunoco LP; Investment in Lake Charles LNG, including the operations of Lake Charles LNG, and Corporate and Other. Its Investment in ETP segment includes the ETP’s operations, which include intrastate transportation and storage operations; interstate transportation and storage operations; midstream operations; liquids transportation and services operations; ETP’s Investment in Sunoco Logistics; Retail Marketing operations, and ETP’s other operations and Investments. The Investment in Sunoco LP segment includes wholesale operations and retail operations. Lake Charles LNG owns a LNG import terminal and regasification facility located on Louisiana’s Gulf Coast.

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