ONEOK (NYSE:OKE) and China Natural Gas (OTCMKTS:CHNGQ) are both utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.
Institutional & Insider Ownership
73.3% of ONEOK shares are owned by institutional investors. 0.5% of ONEOK shares are owned by insiders. Comparatively, 20.8% of China Natural Gas shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares ONEOK and China Natural Gas’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Natural Gas||N/A||N/A||N/A|
ONEOK pays an annual dividend of $3.30 per share and has a dividend yield of 5.0%. China Natural Gas does not pay a dividend. ONEOK pays out 187.5% 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 has raised its dividend for 15 consecutive years.
This is a summary of recent recommendations for ONEOK and China Natural Gas, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Natural Gas||0||0||0||0||N/A|
ONEOK currently has a consensus price target of $69.53, suggesting a potential upside of 6.40%. Given ONEOK’s higher probable upside, analysts plainly believe ONEOK is more favorable than China Natural Gas.
Risk & Volatility
ONEOK has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, China Natural Gas has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500.
Valuation and Earnings
This table compares ONEOK and China Natural Gas’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ONEOK||$12.17 billion||2.21||$387.84 million||$1.76||37.15|
|China Natural Gas||N/A||N/A||N/A||N/A||N/A|
ONEOK has higher revenue and earnings than China Natural Gas.
ONEOK beats China Natural Gas on 9 of the 12 factors compared between the two stocks.
ONEOK Company Profile
ONEOK, Inc., through its general partner interests in ONEOK Partners, L.P., engages in the gathering, processing, storage, and transportation of natural gas in the United States. The company operates through Natural Gas Gathering and Processing, Natural Gas Liquids, and Natural Gas Pipelines segments. It owns natural gas gathering pipelines and processing plants in the Mid-Continent and Rocky Mountain regions. The company also gathers, treats, fractionates, and transports natural gas liquids (NGL), as well as stores, markets, and distributes NGL products. It owns NGL gathering and distribution pipelines in Oklahoma, Kansas, Texas, New Mexico, Montana, North Dakota, Wyoming, and Colorado; terminal and storage facilities in Missouri, Nebraska, Iowa, and Illinois; and NGL distribution and refined petroleum products pipelines in Kansas, Missouri, Nebraska, Iowa, Illinois, and Indiana, as well as owns and operates truck- and rail-loading, and -unloading facilities that interconnect with its NGL fractionation and pipeline assets. In addition, the company operates regulated interstate and intrastate natural gas transmission pipelines and natural gas storage facilities. Further, it owns and operates a parking garage in downtown Tulsa, Oklahoma; and leases excess office space to others. The company serves integrated and independent exploration and production companies; NGL and natural gas gathering and processing companies; crude oil and natural gas production companies; propane distributors; ethanol producers; and petrochemical, refining, and NGL marketing companies, as well as natural gas distribution companies, electric-generation facilities, industrial companies, municipalities, and marketing companies. ONEOK, Inc. was founded in 1906 and is headquartered in Tulsa, Oklahoma.
China Natural Gas Company Profile
China Natural Gas, Inc., an integrated natural gas operator, engages in the sale and distribution of natural gas and gasoline to commercial, industrial, and residential customers in the People's Republic of China. The company is primarily involved in the distribution of compressed natural gas (CNG) through its variable interest entity-owned CNG fueling stations. As of December 31, 2012, it operated 31 CNG fueling stations, including 20 CNG fueling stations in Shaanxi Province, 10 CNG fueling stations in Henan Province, and 1 CNG fueling station in Hubei Province. It also installs natural gas pipelines, as well as distributes and sells piped natural gas to residential and commercial customers through a high pressure pipeline network of approximately 120 kilometers in the city of Xi'an in Shaanxi Province, including Lantian County; the districts of Lintong and Baqiao in Shaanxi Province; and the city of Lingbao in Henan Province. As of the above date, the company had approximately 122,020 residential and commercial customers for its pipeline network, as well as operated 4 automobile conversion sites for converting gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered vehicles. The company is based in Xi'an, the People's Republic of China. On July 2, 2014, the involuntary petition of China Natural Gas, Inc. for reorganization under Chapter 11 was converted to Chapter 7. The involuntary petition was filed under Chapter 11 on February 8, 2013.
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