ONEOK (OKE) & Its Rivals Critical Analysis
ONEOK (NYSE: OKE) is one of 54 publicly-traded companies in the “Oil & Gas Transportation Services” industry, but how does it compare to its competitors? We will compare ONEOK to related businesses based on the strength of its earnings, risk, analyst recommendations, profitability, dividends, institutional ownership and valuation.
Institutional & Insider Ownership
51.8% of ONEOK shares are held by institutional investors. Comparatively, 57.3% of shares of all “Oil & Gas Transportation Services” companies are held by institutional investors. 1.0% of ONEOK shares are held by company insiders. Comparatively, 9.3% of shares of all “Oil & Gas Transportation Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of current ratings for ONEOK and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ONEOK presently has a consensus target price of $58.33, indicating a potential upside of 7.49%. As a group, “Oil & Gas Transportation Services” companies have a potential upside of 24.72%. Given ONEOK’s competitors stronger consensus rating and higher probable upside, analysts plainly believe ONEOK has less favorable growth aspects than its competitors.
Earnings & Valuation
This table compares ONEOK and its competitors top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|ONEOK||$10.49 billion||$1.68 billion||33.92|
|ONEOK Competitors||$5.65 billion||$1.31 billion||34.99|
ONEOK has higher revenue and earnings than its competitors. ONEOK is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Risk & Volatility
ONEOK has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, ONEOK’s competitors have a beta of 1.39, meaning that their average share price is 39% more volatile than the S&P 500.
ONEOK pays an annual dividend of $2.98 per share and has a dividend yield of 5.5%. 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. As a group, “Oil & Gas Transportation Services” companies pay a dividend yield of 6.6% and pay out 164.2% of their earnings in the form of a dividend. ONEOK has raised its dividend for 14 consecutive years. ONEOK lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.
This table compares ONEOK and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
ONEOK competitors beat ONEOK on 13 of the 15 factors compared.
ONEOK Company Profile
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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