ONEOK, Inc. (OKE) vs Pembina Pipeline Corp. (PBA)

ONEOK, Inc. and Pembina Pipeline Corp. are both Oil & Gas Midstream companies. ONEOK, Inc. is the larger, with a market value of $57.2B against $28.0B — 2.0× the size. ONEOK, Inc. trades at the lower P/E: 16.1× against 24.4×. ONEOK, Inc. grew revenue faster over the last twelve months: 40.8% against 2.50%. Pembina Pipeline Corp. has the higher net margin (20.1% vs 9.29%) and the lower return on invested capital (6.10% vs 7.02%). Both pay a dividend; ONEOK, Inc. yields more (4.54% vs 4.18%). Across the 23 metrics below, ONEOK, Inc. leads on 15 and Pembina Pipeline Corp. on 8.

Valuation

Metric OKE PBA Oil & Gas Midstream median
P/E 16.10 24.44 12.77
P/S 1.50 4.92 2.36
P/B 2.56 2.63 2.09
Price to free cash flow 20.28 18.36 9.71
EV/EBITDA 11.81 13.68 8.30
EV/Sales 2.29 6.51 3.88
Earnings yield 6.21% 4.09% 7.15%
Free cash flow yield 4.93% 5.45% 6.86%

Profitability

Metric OKE PBA Oil & Gas Midstream median
Gross margin 27.21% 40.97% 56.58%
Operating margin 15.52% 35.83% 34.18%
Net margin 9.29% 20.12% 22.50%
Free cash flow margin 7.38% 26.77% 13.70%
Return on equity 16.27% 10.84% 14.65%
Return on assets 5.49% 4.60% 5.00%
Return on invested capital 7.02% 6.10% 6.13%

Growth

Metric OKE PBA Oil & Gas Midstream median
Revenue growth (TTM) 40.83% 2.50% 15.60%
EPS growth (last fiscal year) 4.84% (13.06%) (7.86%)
Revenue growth, 5-year CAGR 31.53% 4.31% 9.59%
Net income growth, 5-year CAGR 40.87% 0.00% 0.00%

Health

Metric OKE PBA Oil & Gas Midstream median
Debt to equity 1.37 0.77 0.78
Current ratio 0.74 0.62 1.19
Net debt to EBITDA 4.40 3.31 3.42

Dividend

Metric OKE PBA Oil & Gas Midstream median
Dividend yield 4.54% 4.18% 4.54%
Payout ratio 0.73 1.03 0.76

Size

Metric OKE PBA Oil & Gas Midstream median
Market cap 57.15b 28.02b 3.73b

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