Sunoco Logistics Partners (NYSE: ETP) and ONEOK (NYSE:OKE) are both large-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.
Insider & Institutional Ownership
58.5% of Sunoco Logistics Partners shares are owned by institutional investors. Comparatively, 51.2% of ONEOK shares are owned by institutional investors. 3.7% of Sunoco Logistics Partners shares are owned by company insiders. Comparatively, 1.0% of ONEOK shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Risk & Volatility
Sunoco Logistics Partners has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, ONEOK has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.
This is a breakdown of recent ratings for Sunoco Logistics Partners and ONEOK, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sunoco Logistics Partners||0||2||13||0||2.87|
Sunoco Logistics Partners currently has a consensus price target of $30.00, suggesting a potential upside of 60.60%. ONEOK has a consensus price target of $57.00, suggesting a potential upside of 0.85%. Given Sunoco Logistics Partners’ stronger consensus rating and higher probable upside, research analysts plainly believe Sunoco Logistics Partners is more favorable than ONEOK.
Valuation and Earnings
This table compares Sunoco Logistics Partners and ONEOK’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sunoco Logistics Partners||$25.53 billion||0.80||$4.81 billion||$0.50||37.36|
|ONEOK||$10.49 billion||2.05||$1.68 billion||$1.60||35.33|
Sunoco Logistics Partners has higher revenue and earnings than ONEOK. ONEOK is trading at a lower price-to-earnings ratio than Sunoco Logistics Partners, indicating that it is currently the more affordable of the two stocks.
This table compares Sunoco Logistics Partners and ONEOK’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sunoco Logistics Partners||3.57%||4.67%||2.04%|
Sunoco Logistics Partners pays an annual dividend of $2.20 per share and has a dividend yield of 11.8%. ONEOK pays an annual dividend of $2.98 per share and has a dividend yield of 5.3%. Sunoco Logistics Partners pays out 440.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ONEOK pays out 186.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sunoco Logistics Partners has raised its dividend for 4 consecutive years and ONEOK has raised its dividend for 14 consecutive years.
Sunoco Logistics Partners beats ONEOK on 10 of the 17 factors compared between the two stocks.
Sunoco Logistics Partners Company Profile
Energy Transfer Partners, L.P., formerly Sunoco Logistics Partners L.P., owns and operates a logistics business. The Company is engaged in the transport, terminaling and storage of crude oil, refined products and natural gas liquids (NGLs). The Company’s segments include Crude Oil, Natural Gas Liquids and Refined Products. In addition to logistics services, it also owns acquisition and marketing assets. The Crude Oil segment provides transportation, terminaling and acquisition and marketing services to crude oil markets throughout the southwest, midwest and northeastern United States. The Natural Gas Liquids segment transports, stores, and executes acquisition and marketing activities utilizing a network of pipelines, storage and blending facilities, and strategic off-take locations that provide access to multiple NGL markets. The Refined Products segment provides transportation and terminaling services, using refined products pipelines and refined products marketing terminals.
ONEOK Company Profile
ONEOK, Inc. is an energy midstream service provider in the United States. The Company owns and operates natural gas liquids (NGL) systems, and is engaged in the gathering, processing, storage and transportation of natural gas. THe Company’s operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions. The Company operates through three business segments. The Natural Gas Gathering and Processing segment provides midstream services to contracted producers in North Dakota, Montana, Wyoming, Kansas and Oklahoma. The Natural Gas Liquids segment owns and operates facilities that gather, fractionate, treat and distribute NGLs and store NGL products primarily in the Mid-Continental, Permian Basin and the Rocky Mountain regions. The Natural Gas Pipelines segment provides transportation and storage services to end users.
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