Yahoo Finance EPD vs. OKE: Which Stock Is the Better Value Option?
Investors interested in Oil and Gas - Production Pipeline - MLB stocks are likely familiar with Enterprise Products Partners (EPD) and Oneok Inc. (OKE). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Enterprise Products Partners has a Zacks Rank of #2 (Buy), while Oneok Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that EPD likely has seen a stronger improvement to its earnings outlook than OKE has recently. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
EPD currently has a forward P/E ratio of 10.48, while OKE has a forward P/E of 16.03. We also note that EPD has a PEG ratio of 1.33. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. OKE currently has a PEG ratio of 4.25.
Another notable valuation metric for EPD is its P/B ratio of 2.16. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, OKE has a P/B of 2.80.
Based on these metrics and many more, EPD holds a Value grade of A, while OKE has a Value grade of C.
EPD stands above OKE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that EPD is the superior value option right now.
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Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report
ONEOK, Inc. (OKE) : Free Stock Analysis Report
