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 $68.5B against $57.2B — 1.2× the size. Energy Transfer LP trades at the lower P/E: 13.8× against 16.1×. 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 (6.62% vs 4.54%). 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 13.82 16.10 12.77
P/S 0.65 1.50 2.36
P/B 1.48 2.56 2.09
Price to free cash flow 13.38 20.28 9.71
EV/EBITDA 8.14 11.81 8.30
EV/Sales 1.28 2.29 3.88
Earnings yield 7.23% 6.21% 7.15%
Free cash flow yield 7.47% 4.93% 6.86%

Profitability

Metric ET OKE Oil & Gas Midstream median
Gross margin 23.58% 27.21% 56.58%
Operating margin 10.04% 15.52% 34.18%
Net margin 4.70% 9.29% 22.50%
Free cash flow margin 4.87% 7.38% 13.70%
Return on equity 11.30% 16.27% 14.65%
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% 15.60%
EPS growth (last fiscal year) (5.47%) 4.84% (7.86%)
Revenue growth, 5-year CAGR 17.04% 31.53% 9.59%
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 6.62% 4.54% 4.54%
Payout ratio 0.92 0.73 0.76

Size

Metric ET OKE Oil & Gas Midstream median
Market cap 68.45b 57.15b 3.73b

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