Critical Comparison: ONEOK (NYSE:OKE) vs. Hafnia (NYSE:HAFN)

ONEOK (NYSE:OKE) and Hafnia (NYSE:HAFN) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Insider and Institutional Ownership

69.1% of ONEOK shares are owned by institutional investors. 0.2% of ONEOK shares are owned 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.

Profitability

This table compares ONEOK and Hafnia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ONEOK	9.29%	16.41%	5.48%
Hafnia	56.72%	26.74%	17.14%

Dividends

ONEOK pays an annual dividend of $4.28 per share and has a dividend yield of 4.6%. Hafnia pays an annual dividend of $2.00 per share and has a dividend yield of 19.3%. ONEOK pays out 73.8% of its earnings in the form of a dividend. Hafnia pays out 151.5% 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 has raised its dividend for 3 consecutive years.

Earnings & Valuation

This table compares ONEOK and Hafnia”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ONEOK	$33.63 billion	1.76	$3.39 billion	$5.80	16.19
Hafnia	$955.87 million	5.55	$339.68 million	$1.32	7.84

ONEOK has higher revenue and earnings than Hafnia. Hafnia is trading at a lower price-to-earnings ratio than ONEOK, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

ONEOK has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Hafnia has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for ONEOK and Hafnia, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ONEOK	0	11	8	1	2.50
Hafnia	0	1	3	1	3.00

ONEOK currently has a consensus target price of $97.53, suggesting a potential upside of 3.88%. Hafnia has a consensus target price of $12.00, suggesting a potential upside of 15.89%. Given Hafnia’s stronger consensus rating and higher possible upside, analysts plainly believe Hafnia is more favorable than ONEOK.

Summary

ONEOK beats Hafnia on 10 of the 17 factors compared between the two stocks.

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.

About Hafnia

Hafnia Limited owns and operates oil product tankers in Bermuda. It operates through Long Range II, Long Range I, Medium Range (MR), Handy size, and Specialized segments. The company transports clean and dirty, refined oil products, vegetable oil, and easy chemicals to national and international oil companies, and chemical companies, as well as trading and utility companies; and owns and operates 200 vessels. It provides ship owning, ship-management, investment, management, corporate support, and agency office services. In addition, the company provides integrated shipping platform, including technical management, commercial and chartering services, pool management, and large-scale bunker desk services. Hafnia Limited is based in Hamilton, Bermuda.