Energy Transfer LP (ET) vs ONEOK, Inc. (OKE)

Energy Transfer LP and ONEOK, Inc. are both Oil & Gas Midstream companies. Energy Transfer LP is the larger, with a market value of $70.2B against $57.5B — 1.2× the size. Energy Transfer LP trades at the lower P/E: 13.7× against 15.3×. ONEOK, Inc. grew revenue faster over the last twelve months: 40.8% against 33.3%. ONEOK, Inc. has the higher net margin (9.29% vs 4.70%) and the higher return on invested capital (7.02% vs 5.72%). Both pay a dividend; Energy Transfer LP yields more (8.97% vs 5.56%). Across the 23 metrics below, ONEOK, Inc. leads on 12 and Energy Transfer LP on 11.

Valuation

Metric ET OKE Oil & Gas Midstream median
P/E 13.73 15.31 13.19
P/S 0.65 1.42 2.60
P/B 1.47 2.43 2.08
Price to free cash flow 13.30 19.28 10.14
EV/EBITDA 8.11 11.44 8.11
EV/Sales 1.27 2.22 3.89
Earnings yield 7.28% 6.53% 6.83%
Free cash flow yield 7.52% 5.19% 6.94%

Profitability

Metric ET OKE Oil & Gas Midstream median
Gross margin 23.58% 27.21% 58.81%
Operating margin 10.04% 15.52% 32.14%
Net margin 4.70% 9.29% 21.16%
Free cash flow margin 4.87% 7.38% 10.15%
Return on equity 11.30% 16.27% 11.30%
Return on assets 3.70% 5.49% 5.00%
Return on invested capital 5.72% 7.02% 6.13%

Growth

Metric ET OKE Oil & Gas Midstream median
Revenue growth (TTM) 33.27% 40.83% 15.44%
EPS growth (last fiscal year) (5.47%) 4.84% —
Revenue growth, 5-year CAGR 17.04% 31.53% 8.96%
Net income growth, 5-year CAGR 0.00% 40.87% 0.00%

Health

Metric ET OKE Oil & Gas Midstream median
Debt to equity 1.35 1.37 0.78
Current ratio 1.16 0.74 1.19
Net debt to EBITDA 4.56 4.40 3.42

Dividend

Metric ET OKE Oil & Gas Midstream median
Dividend yield 8.97% 5.56% 7.29%
Payout ratio — 0.70 0.64

Size

Metric ET OKE Oil & Gas Midstream median
Market cap 70.21b 57.48b 3.61b

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