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 $69.5B against $57.5B — 1.2× the size. ONEOK, Inc. trades at the lower P/E: 15.3× against 19.7×. ONEOK, Inc. grew revenue faster over the last twelve months: 40.8% against 12.5%. Kinder Morgan, Inc. has the higher net margin (19.3% vs 9.29%) and the lower return on invested capital (5.02% vs 7.02%). Both pay a dividend; Kinder Morgan, Inc. yields more (6.93% vs 5.56%). Across the 23 metrics below, ONEOK, Inc. leads on 14 and Kinder Morgan, Inc. on 9.

Valuation

Metric KMI OKE Oil & Gas Midstream median
P/E 19.71 15.31 13.19
P/S 3.81 1.42 2.60
P/B 2.08 2.43 2.08
Price to free cash flow 25.77 19.28 10.14
EV/EBITDA 13.06 11.44 8.11
EV/Sales 5.60 2.22 3.89
Earnings yield 5.07% 6.53% 6.83%
Free cash flow yield 3.88% 5.19% 6.94%

Profitability

Metric KMI OKE Oil & Gas Midstream median
Gross margin 66.61% 27.21% 58.81%
Operating margin 29.05% 15.52% 32.14%
Net margin 19.31% 9.29% 21.16%
Free cash flow margin 14.78% 7.38% 10.15%
Return on equity 10.67% 16.27% 11.30%
Return on assets 4.74% 5.49% 5.00%
Return on invested capital 5.02% 7.02% 6.13%

Growth

Metric KMI OKE Oil & Gas Midstream median
Revenue growth (TTM) 12.46% 40.83% 15.44%
EPS growth (last fiscal year) 17.09% 4.84% —
Revenue growth, 5-year CAGR 7.68% 31.53% 8.96%
Net income growth, 5-year CAGR 91.39% 40.87% 0.00%

Health

Metric KMI OKE Oil & Gas Midstream median
Debt to equity 0.98 1.37 0.78
Current ratio 0.46 0.74 1.19
Net debt to EBITDA 4.44 4.40 3.42

Dividend

Metric KMI OKE Oil & Gas Midstream median
Dividend yield 6.93% 5.56% 7.29%
Payout ratio 1.00 0.70 0.64

Size

Metric KMI OKE Oil & Gas Midstream median
Market cap 69.52b 57.48b 3.61b

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