Kinder Morgan, Inc. (KMI) vs ONEOK, Inc. (OKE)

Kinder Morgan, Inc. and ONEOK, Inc. are both Oil & Gas Midstream companies. Kinder Morgan, Inc. is the larger, with a market value of $67.3B against $54.4B — 1.2× the size. ONEOK, Inc. trades at the lower P/E: 13.3× against 18.7×. ONEOK, Inc. grew revenue faster over the last twelve months: 36.8% against 11.7%. Kinder Morgan, Inc. has the higher net margin (19.6% vs 9.42%) and the lower return on invested capital (5.11% vs 6.30%). Both pay a dividend; ONEOK, Inc. yields more (4.94% vs 3.91%). Across the 23 metrics below, ONEOK, Inc. leads on 17 and Kinder Morgan, Inc. on 6.

Valuation

Metric KMI OKE Oil & Gas Midstream median
P/E 18.72 13.32 11.68
P/S 3.68 1.27 2.39
P/B 2.06 1.68 1.68
Price to free cash flow 25.51 21.62 8.52
EV/EBITDA 12.75 10.81 9.03
EV/Sales 5.43 1.92 3.43
Earnings yield 5.34% 7.51% 7.78%
Free cash flow yield 3.92% 4.62% 7.11%

Profitability

Metric KMI OKE Oil & Gas Midstream median
Gross margin 66.38% 25.20% 54.87%
Operating margin 28.97% 14.17% 34.73%
Net margin 19.64% 9.42% 20.12%
Free cash flow margin 14.43% 5.85% 14.43%
Return on equity 11.11% 14.89% 11.73%
Return on assets 4.88% 5.77% 4.43%
Return on invested capital 5.11% 6.30% 6.10%

Growth

Metric KMI OKE Oil & Gas Midstream median
Revenue growth (TTM) 11.74% 36.82% 14.88%
EPS growth (last fiscal year) 17.09% 4.84% (7.78%)
Revenue growth, 5-year CAGR 7.68% 31.53% 10.05%
Net income growth, 5-year CAGR 91.39% 40.87% 0.00%

Health

Metric KMI OKE Oil & Gas Midstream median
Debt to equity 1.01 0.88 0.77
Current ratio 0.67 0.84 1.19
Net debt to EBITDA 4.44 4.40 3.46

Dividend

Metric KMI OKE Oil & Gas Midstream median
Dividend yield 3.91% 4.94% 4.94%
Payout ratio 0.73 0.66 0.73

Size

Metric KMI OKE Oil & Gas Midstream median
Market cap 67.25b 54.38b 3.56b

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