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ET vs. OKE: Which Stock Is the Better Value Option?
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Investors interested in Oil and Gas - Production Pipeline - MLB stocks are likely familiar with Energy Transfer LP (ET - Free Report) and Oneok Inc. (OKE - Free Report) . 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Energy Transfer LP and Oneok Inc. are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ET currently has a forward P/E ratio of 11.22, while OKE has a forward P/E of 16.86. We also note that ET has a PEG ratio of 0.44. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. OKE currently has a PEG ratio of 4.47.
Another notable valuation metric for ET is its P/B ratio of 1.45. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, OKE has a P/B of 3.
Based on these metrics and many more, ET holds a Value grade of A, while OKE has a Value grade of C.
Both ET and OKE are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ET is the superior value option right now.
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ET vs. OKE: Which Stock Is the Better Value Option?
Investors interested in Oil and Gas - Production Pipeline - MLB stocks are likely familiar with Energy Transfer LP (ET - Free Report) and Oneok Inc. (OKE - Free Report) . 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Energy Transfer LP and Oneok Inc. are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ET currently has a forward P/E ratio of 11.22, while OKE has a forward P/E of 16.86. We also note that ET has a PEG ratio of 0.44. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. OKE currently has a PEG ratio of 4.47.
Another notable valuation metric for ET is its P/B ratio of 1.45. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, OKE has a P/B of 3.
Based on these metrics and many more, ET holds a Value grade of A, while OKE has a Value grade of C.
Both ET and OKE are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ET is the superior value option right now.