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 $54.4B against $27.7B — 2.0× the size. ONEOK, Inc. trades at the lower P/E: 13.3× against 23.3×. ONEOK, Inc. grew revenue faster over the last twelve months: 36.8% against 2.50%. Pembina Pipeline Corp. has the higher net margin (20.1% vs 9.42%) and the lower return on invested capital (6.10% vs 6.30%). Both pay a dividend; ONEOK, Inc. yields more (4.94% vs 4.38%). 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 13.32 23.32 11.68
P/S 1.27 4.69 2.39
P/B 1.68 2.51 1.68
Price to free cash flow 21.62 17.52 8.52
EV/EBITDA 10.81 13.21 9.03
EV/Sales 1.92 6.28 3.43
Earnings yield 7.51% 4.29% 7.78%
Free cash flow yield 4.62% 5.71% 7.11%

Profitability

Metric OKE PBA Oil & Gas Midstream median
Gross margin 25.20% 40.97% 54.87%
Operating margin 14.17% 35.83% 34.73%
Net margin 9.42% 20.12% 20.12%
Free cash flow margin 5.85% 26.77% 14.43%
Return on equity 14.89% 10.84% 11.73%
Return on assets 5.77% 4.60% 4.43%
Return on invested capital 6.30% 6.10% 6.10%

Growth

Metric OKE PBA Oil & Gas Midstream median
Revenue growth (TTM) 36.82% 2.50% 14.88%
EPS growth (last fiscal year) 4.84% (13.06%) (7.78%)
Revenue growth, 5-year CAGR 31.53% 4.31% 10.05%
Net income growth, 5-year CAGR 40.87% 0.00% 0.00%

Health

Metric OKE PBA Oil & Gas Midstream median
Debt to equity 0.88 0.77 0.77
Current ratio 0.84 0.62 1.19
Net debt to EBITDA 4.40 3.31 3.46

Dividend

Metric OKE PBA Oil & Gas Midstream median
Dividend yield 4.94% 4.38% 4.94%
Payout ratio 0.66 1.03 0.73

Size

Metric OKE PBA Oil & Gas Midstream median
Market cap 54.38b 27.70b 3.56b

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