Head to Head Review: Columbia Pipeline Partners (CPPL) and ONEOK (OKE)
Columbia Pipeline Partners (NYSE: CPPL) and ONEOK (NYSE:OKE) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.
This table compares Columbia Pipeline Partners and ONEOK’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Columbia Pipeline Partners||6.40%||0.92%||0.84%|
This is a summary of current ratings for Columbia Pipeline Partners and ONEOK, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Columbia Pipeline Partners||0||3||0||0||2.00|
Columbia Pipeline Partners currently has a consensus price target of $16.58, indicating a potential downside of 3.30%. ONEOK has a consensus price target of $56.91, indicating a potential upside of 4.17%. Given ONEOK’s stronger consensus rating and higher probable upside, analysts clearly believe ONEOK is more favorable than Columbia Pipeline Partners.
Institutional and Insider Ownership
88.2% of Columbia Pipeline Partners shares are held by institutional investors. Comparatively, 51.2% of ONEOK shares are held by institutional investors. 1.0% of ONEOK 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.
Columbia Pipeline Partners pays an annual dividend of $0.79 per share and has a dividend yield of 4.6%. ONEOK pays an annual dividend of $2.98 per share and has a dividend yield of 5.5%. Columbia Pipeline Partners pays out 112.9% 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 pays out 186.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Columbia Pipeline Partners has increased its dividend for 14 consecutive years.
Volatility and Risk
Columbia Pipeline Partners has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, ONEOK has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.
Earnings and Valuation
This table compares Columbia Pipeline Partners and ONEOK’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Columbia Pipeline Partners||N/A||N/A||N/A||$0.70||24.50|
|ONEOK||$10.49 billion||1.98||$1.68 billion||$1.60||34.14|
ONEOK has higher revenue and earnings than Columbia Pipeline Partners. Columbia Pipeline Partners is trading at a lower price-to-earnings ratio than ONEOK, indicating that it is currently the more affordable of the two stocks.
ONEOK beats Columbia Pipeline Partners on 10 of the 14 factors compared between the two stocks.
About Columbia Pipeline Partners
Columbia Pipeline Partners LP (the Partnership) is a limited partnership company operating a portfolio of pipelines, storage and related midstream assets. It is engaged in interstate gas transportation and storage services for local distribution companies (LDCs), marketers and industrial and commercial customers located in northeastern, mid-Atlantic, Midwestern and southern states, and the District of Columbia along with unregulated businesses that include midstream services, including gathering, treating, conditioning, processing, compression and liquids handling, and development of mineral rights positions. The Company owns, operates and develops a portfolio of pipelines, storage and related midstream assets. The Company has a general partner interest in CPG OpCo LP (Columbia OpCo), as well as a limited partner interest in Columbia OpCo, a limited partnership that owns the natural gas transmission and storage assets of Columbia Energy Group (CEG).
ONEOK, Inc. is an energy midstream service provider in the United States. The Company owns and operates natural gas liquids (NGL) systems, and is engaged in the gathering, processing, storage and transportation of natural gas. THe Company’s operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions. The Company operates through three business segments. The Natural Gas Gathering and Processing segment provides midstream services to contracted producers in North Dakota, Montana, Wyoming, Kansas and Oklahoma. The Natural Gas Liquids segment owns and operates facilities that gather, fractionate, treat and distribute NGLs and store NGL products primarily in the Mid-Continental, Permian Basin and the Rocky Mountain regions. The Natural Gas Pipelines segment provides transportation and storage services to end users.
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