ONEOK vs Enterprise Which Performs Better?

Oneok and Enterprise are two prominent players in the energy sector, specializing in pipelines and other midstream services. As the demand for energy continues to rise, these companies have seen steady growth in revenue and earnings. Both Oneok and Enterprise have a strong track record of financial performance and dividend payouts, making them attractive investments for income-seeking investors. However, each company has its own unique strengths and weaknesses that investors should consider before making a decision. In this comparison, we will delve deeper into the financials, growth prospects, and overall investment potential of Oneok versus Enterprise stocks.

ONEOK or Enterprise?

When comparing ONEOK and Enterprise, 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 ONEOK and Enterprise.

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. ONEOK has a dividend yield of 3.81%, while Enterprise has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ONEOK reports a 5-year dividend growth of 3.32% year and a payout ratio of 81.79%. On the other hand, Enterprise reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 ONEOK P/E ratio at 21.73 and Enterprise's P/E ratio at 18.81. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ONEOK P/B ratio is 3.60 while Enterprise's P/B ratio is 2.16.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $103.53 for ONEOK and $1.27 for Enterprise. Over the past year, ONEOK's prices ranged from $67.05 to $118.07, with a yearly change of 76.09%. Enterprise's prices fluctuated between $0.55 and $2.10, with a yearly change of 281.82%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.