ONEOK (OKE) vs. EnLink Midstream Partners (ENLK) Head to Head Review
ONEOK (NYSE: OKE) and EnLink Midstream Partners (NYSE:ENLK) are both mid-cap utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.
Institutional and Insider Ownership
57.8% of ONEOK shares are held by institutional investors. Comparatively, 38.9% of EnLink Midstream Partners shares are held by institutional investors. 1.0% of ONEOK shares are held by insiders. Comparatively, 0.2% of EnLink Midstream Partners shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Volatility and Risk
ONEOK has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, EnLink Midstream Partners has a beta of 2.08, meaning that its share price is 108% more volatile than the S&P 500.
ONEOK pays an annual dividend of $2.98 per share and has a dividend yield of 5.8%. EnLink Midstream Partners pays an annual dividend of $1.56 per share and has a dividend yield of 10.3%. 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. EnLink Midstream Partners pays out -678.2% of its earnings in the form of a dividend. ONEOK has increased its dividend for 2 consecutive years and EnLink Midstream Partners has increased its dividend for 14 consecutive years. EnLink Midstream Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of current recommendations and price targets for ONEOK and EnLink Midstream Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|EnLink Midstream Partners||0||6||4||0||2.40|
ONEOK currently has a consensus price target of $58.42, indicating a potential upside of 14.45%. EnLink Midstream Partners has a consensus price target of $18.29, indicating a potential upside of 21.26%. Given EnLink Midstream Partners’ stronger consensus rating and higher possible upside, analysts plainly believe EnLink Midstream Partners is more favorable than ONEOK.
Earnings & Valuation
This table compares ONEOK and EnLink Midstream Partners’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|ONEOK||$8.92 billion||2.19||$352.03 million||$1.60||31.90|
|EnLink Midstream Partners||$4.25 billion||1.24||-$565.20 million||($0.23)||-65.56|
ONEOK has higher revenue and earnings than EnLink Midstream Partners. EnLink Midstream Partners is trading at a lower price-to-earnings ratio than ONEOK, indicating that it is currently the more affordable of the two stocks.
This table compares ONEOK and EnLink Midstream Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|EnLink Midstream Partners||0.76%||1.20%||0.53%|
ONEOK beats EnLink Midstream Partners on 10 of the 16 factors compared between the two stocks.
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.
About EnLink Midstream Partners
EnLink Midstream Partners, LP is a midstream company. The Company’s business activities are conducted through its subsidiary, EnLink Midstream Operating, LP (the Operating Partnership) and the subsidiaries of the Operating Partnership. The Company operates through five segments: Texas, Oklahoma, Louisiana, Crude and Condensate, and Corporate. The Company focuses on providing midstream energy services, including gathering, processing, transmission, fractionation, storage, condensate stabilization, brine services and marketing to producers of natural gas, natural gas liquids (NGLs), crude oil and condensate. As of December 31, 2016, its midstream energy asset network included approximately 11,000 miles of pipelines, 20 natural gas processing plants, seven fractionators, barge and rail terminals, product storage facilities, purchasing and marketing capabilities, brine disposal wells, a crude oil trucking fleet, and equity investments in certain private midstream companies.
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