Contrasting ONEOK (OKE) and The Competition

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

Insider and Institutional Ownership

69.1% of ONEOK shares are owned by institutional investors. Comparatively, 30.8% 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, 15.3% 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 will outperform the market over the long term.

Profitability

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	9.42%	16.36%	5.92%
ONEOK Competitors	-472.92%	19.47%	6.31%

Risk and Volatility

ONEOK has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, ONEOK’s competitors have a beta of -4.03, meaning that their average share price is 503% less volatile than the S&P 500.

Dividends

ONEOK pays an annual dividend of $4.28 per share and has a dividend yield of 4.4%. ONEOK pays out 66.5% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 8.4% and pay out -119.8% of their earnings in the form of a dividend. ONEOK has raised its dividend for 3 consecutive years. ONEOK lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

This table compares ONEOK and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ONEOK	$33.63 billion	$3.39 billion	15.08
ONEOK Competitors	$10.76 billion	$5.51 billion	0.53

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

Analyst Recommendations

This is a summary of current ratings for ONEOK and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ONEOK	0	11	8	1	2.50
ONEOK Competitors	5960	26925	40745	2403	2.52

ONEOK currently has a consensus price target of $98.05, indicating a potential upside of 0.98%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 16.96%. Given ONEOK’s competitors stronger consensus rating and higher probable upside, analysts clearly believe ONEOK has less favorable growth aspects than its competitors.

Summary

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

ONEOK Company Profile

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.