In This Article:
Investors with an interest in Oil and Gas - Production Pipeline - MLB stocks have likely encountered both Enterprise Products Partners (EPD) and Oneok Inc. (OKE). But which of these two stocks presents investors with the better value opportunity right now? Let's 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, both Enterprise Products Partners and Oneok Inc. are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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 11.77, while OKE has a forward P/E of 16.70. We also note that EPD has a PEG ratio of 1.58. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. OKE currently has a PEG ratio of 3.80.
Another notable valuation metric for EPD is its P/B ratio of 2.49. 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 3.47.
These are just a few of the metrics contributing to EPD's Value grade of B and OKE's Value grade of C.
Both EPD and OKE are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that EPD is the superior value option right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report
ONEOK, Inc. (OKE) : Free Stock Analysis Report