Oneok Partners (NYSE: OKS) and DCP Midstream Partners, (NYSE:DCP) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
Volatility and Risk
Oneok Partners has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, DCP Midstream Partners, has a beta of 2.1, suggesting that its share price is 110% more volatile than the S&P 500.
Oneok Partners pays an annual dividend of $3.16 per share and has a dividend yield of 6.2%. DCP Midstream Partners, pays an annual dividend of $3.12 per share and has a dividend yield of 10.2%. Oneok Partners pays out 137.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DCP Midstream Partners, pays out 164.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a summary of recent ratings and recommmendations for Oneok Partners and DCP Midstream Partners,, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|DCP Midstream Partners,||1||5||4||0||2.30|
Oneok Partners currently has a consensus price target of $47.09, suggesting a potential downside of 7.79%. DCP Midstream Partners, has a consensus price target of $39.22, suggesting a potential upside of 27.80%. Given DCP Midstream Partners,’s stronger consensus rating and higher possible upside, analysts plainly believe DCP Midstream Partners, is more favorable than Oneok Partners.
Earnings & Valuation
This table compares Oneok Partners and DCP Midstream Partners,’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|DCP Midstream Partners,||$2.44 billion||1.80||$401.00 million||$1.90||16.15|
DCP Midstream Partners, has higher revenue and earnings than Oneok Partners. DCP Midstream Partners, is trading at a lower price-to-earnings ratio than Oneok Partners, indicating that it is currently the more affordable of the two stocks.
This table compares Oneok Partners and DCP Midstream Partners,’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|DCP Midstream Partners,||7.93%||6.71%||3.54%|
Insider & Institutional Ownership
41.2% of Oneok Partners shares are owned by institutional investors. Comparatively, 55.7% of DCP Midstream Partners, shares are owned by institutional investors. 0.0% of DCP Midstream Partners, shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
DCP Midstream Partners, beats Oneok Partners on 8 of the 13 factors compared between the two stocks.
About Oneok Partners
ONEOK Partners, L.P. is engaged in gathering, processing, storage and transportation of natural gas in the United States. In addition, the Company owns natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions. It operates through three segments: Natural Gas Gathering and Processing, Natural Gas Liquids, and Natural Gas Pipelines. The Natural Gas Gathering and Processing segment provides midstream services to contracted producers in North Dakota, Montana, Wyoming, Kansas and Oklahoma. Its Natural Gas Liquids segment owned and operated facilities that gathered, fractionated, treated and distributed NGLs and store NGL products, in Oklahoma, Kansas, Texas, New Mexico and the Rocky Mountain region where it provided midstream services to producers of NGLs and delivered those products to the two primary market centers, one in the Mid-Continent in Conway, and the other in the Gulf Coast in Mont Belvieu, Texas, as of December 31, 2016.
About DCP Midstream Partners,
DCP Midstream, LP, formerly DCP Midstream Partners, LP, is a producer and marketer of natural gas liquids (NGLs) in the United States. The Company is engaged in the business of gathering, compressing, treating, processing, transporting, storing and selling natural gas; producing, fractionating, transporting, storing and selling NGLs and recovering, and selling condensate, and transporting, storing and selling propane in wholesale markets. Its segments include Natural Gas Services, NGL Logistics and Wholesale Propane Logistics. The Natural Gas Services segment consists of various assets and ownership interests that provide a range of wellhead to market services for its producer customers. It owns and operates assets for its NGL Logistics business in the states of Colorado, Kansas, Louisiana, Michigan, Oklahoma and Texas. It owns or operates assets for its wholesale propane logistics business in the states of Maine, Massachusetts, New York, Pennsylvania, Vermont and Virginia.
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