Enterprise vs ONEOK Which Performs Better?

Enterprise Products Partners and ONEOK are two prominent players in the energy sector, both specializing in the transportation and processing of natural gas and other related products. While Enterprise boasts a diversified portfolio of midstream assets across various regions, ONEOK focuses on the development of infrastructure in key shale plays like the Permian Basin and the Williston Basin. Investors looking for steady dividends may favor Enterprise, while those seeking growth potential may lean towards ONEOK. Both companies have strong track records and are well-positioned to capitalize on the growing demand for energy resources in the US.

Enterprise or ONEOK?

When comparing Enterprise and ONEOK, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Enterprise and ONEOK.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Enterprise has a dividend yield of -%, while ONEOK has a dividend yield of 3.6%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Enterprise reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, ONEOK reports a 5-year dividend growth of 3.32% year and a payout ratio of 81.79%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Enterprise P/E ratio at 20.59 and ONEOK's P/E ratio at 23.00. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Enterprise P/B ratio is 2.36 while ONEOK's P/B ratio is 3.81.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Enterprise has seen a 5-year revenue growth of 0.81%, while ONEOK's is 0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Enterprise's ROE at 12.38% and ONEOK's ROE at 16.84%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $1.41 for Enterprise and $108.87 for ONEOK. Over the past year, Enterprise's prices ranged from $0.53 to $2.10, with a yearly change of 296.23%. ONEOK's prices fluctuated between $65.49 and $118.07, with a yearly change of 80.29%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.