Contrasting ONEOK (OKE) & Its Competitors

ONEOK (NYSE:OKE) is one of 1,050 public companies in the “Oil, Gas & Consumable Fuels” industry, but how does it compare to its peers? We will compare ONEOK to related businesses based on the strength of its institutional ownership, earnings, profitability, risk, valuation, analyst recommendations and dividends.

Institutional & Insider Ownership

69.1% of ONEOK shares are owned by institutional investors. Comparatively, 30.7% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by institutional investors. 0.2% of ONEOK shares are owned by company insiders. Comparatively, 15.4% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares ONEOK and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ONEOK	9.29%	16.41%	5.48%
ONEOK Competitors	-471.13%	20.31%	6.19%

Valuation and Earnings

This table compares ONEOK and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ONEOK	$33.63 billion	$3.39 billion	16.52
ONEOK Competitors	$14.70 billion	$5.51 billion	0.96

ONEOK has higher revenue, but lower earnings than its peers. ONEOK is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

ONEOK has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, ONEOK’s peers have a beta of -4.01, suggesting that their average share price is 501% less volatile than the S&P 500.

Dividends

ONEOK pays an annual dividend of $4.28 per share and has a dividend yield of 4.5%. ONEOK pays out 73.8% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 8.5% and pay out -117.6% of their earnings in the form of a dividend. ONEOK has raised its dividend for 3 consecutive years. ONEOK lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a summary of current recommendations for ONEOK and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ONEOK	0	11	8	1	2.50
ONEOK Competitors	5950	26896	40701	2387	2.52

ONEOK presently has a consensus price target of $97.53, suggesting a potential upside of 1.76%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 17.92%. Given ONEOK’s peers stronger consensus rating and higher probable upside, analysts clearly believe ONEOK has less favorable growth aspects than its peers.

Summary

ONEOK peers beat ONEOK on 9 of the 15 factors compared.

About ONEOK

ONEOK, Inc. engages in gathering, processing, fractionation, storage, transportation, and marketing of natural gas and natural gas liquids (NGL) in the United States. It operates through four segments: Natural Gas Gathering and Processing, Natural Gas Liquids, Natural Gas Pipelines, and Refined Products and Crude. The company owns natural gas gathering pipelines and processing plants in the Mid-Continent and Rocky Mountain regions; and provides midstream services to producers of NGLs. It also owns NGL gathering and distribution pipelines in Oklahoma, Kansas, Texas, New Mexico, Montana, North Dakota, Wyoming, and Colorado; terminal and storage facilities in Kansas, Nebraska, Iowa, and Illinois; NGL distribution pipelines in Kansas, Nebraska, Iowa, Illinois, and Indiana; transports refined petroleum products, including unleaded gasoline and diesel; and owns and operates truck- and rail-loading, and -unloading facilities connected to NGL fractionation, storage, and pipeline assets. In addition, the company transports and stores natural gas through regulated interstate and intrastate natural gas transmission pipelines, and natural gas storage facilities. Further, it owns and operates a parking garage in downtown Tulsa, Oklahoma; and leases excess office space and rail cars. Additionally, the company transports, stores, and distributes refined products, NGLs, and crude oil, as well as conducts commodity-related activities, including liquids blending and marketing activities. It serves integrated and independent exploration and production companies; other NGL and natural gas gathering and processing companies; crude oil and natural gas production companies; utilities; industrial companies; natural gasoline distributors; propane distributors; municipalities; ethanol producers; petrochemical, refining, and marketing companies; and heating fuel users, refineries, and exporters. ONEOK, Inc. was founded in 1906 and is headquartered in Tulsa, Oklahoma.