ONEOK (NYSE:OKE) vs. International Seaways (NYSE:INSW) Head to Head Review

International Seaways (NYSE:INSW) and ONEOK (NYSE:OKE) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Volatility and Risk

International Seaways has a beta of -0.13, meaning that its stock price is 113% less volatile than the S&P 500. Comparatively, ONEOK has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.

Profitability

This table compares International Seaways and ONEOK’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International Seaways	61.98%	31.75%	23.54%
ONEOK	9.29%	16.41%	5.48%

Insider & Institutional Ownership

67.3% of International Seaways shares are held by institutional investors. Comparatively, 69.1% of ONEOK shares are held by institutional investors. 1.7% of International Seaways shares are held by company insiders. Comparatively, 0.2% of ONEOK shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares International Seaways and ONEOK”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Seaways	$843.30 million	6.10	$309.26 million	$15.64	6.64
ONEOK	$33.63 billion	1.69	$3.39 billion	$5.80	15.56

ONEOK has higher revenue and earnings than International Seaways. International Seaways is trading at a lower price-to-earnings ratio than ONEOK, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and price targets for International Seaways and ONEOK, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Seaways	0	2	5	0	2.71
ONEOK	0	12	7	1	2.45

International Seaways currently has a consensus price target of $102.25, suggesting a potential downside of 1.55%. ONEOK has a consensus price target of $96.88, suggesting a potential upside of 7.34%. Given ONEOK’s higher possible upside, analysts plainly believe ONEOK is more favorable than International Seaways.

Dividends

International Seaways pays an annual dividend of $20.20 per share and has a dividend yield of 19.4%. ONEOK pays an annual dividend of $4.28 per share and has a dividend yield of 4.7%. International Seaways pays out 129.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ONEOK pays out 73.8% of its earnings in the form of a dividend. ONEOK has raised its dividend for 3 consecutive years.

Summary

ONEOK beats International Seaways on 10 of the 18 factors compared between the two stocks.

About International Seaways

International Seaways, Inc. owns and operates a fleet of oceangoing vessels for the transportation of crude oil and petroleum products in the international flag trade. It operates in two segments: Crude Tankers and Product Carriers. As of December 31, 2023, the company owned a fleet of 73 vessels. It serves independent and state-owned oil companies, oil traders, refinery operators, and international government entities. The company was formerly known as OSG International, Inc. and changed its name to International Seaways, Inc. in October 2016. International Seaways, Inc. was incorporated in 1999 and is headquartered in New York, New York.

About ONEOK

ONEOK, Inc. engages in gathering, processing, fractionation, storage, transportation, and marketing of natural gas and natural gas liquids (NGL) in the United States. It operates through four segments: Natural Gas Gathering and Processing, Natural Gas Liquids, Natural Gas Pipelines, and Refined Products and Crude. The company owns natural gas gathering pipelines and processing plants in the Mid-Continent and Rocky Mountain regions; and provides midstream services to producers of NGLs. It also owns NGL gathering and distribution pipelines in Oklahoma, Kansas, Texas, New Mexico, Montana, North Dakota, Wyoming, and Colorado; terminal and storage facilities in Kansas, Nebraska, Iowa, and Illinois; NGL distribution pipelines in Kansas, Nebraska, Iowa, Illinois, and Indiana; transports refined petroleum products, including unleaded gasoline and diesel; and owns and operates truck- and rail-loading, and -unloading facilities connected to NGL fractionation, storage, and pipeline assets. In addition, the company transports and stores natural gas through 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 and rail cars. Additionally, the company transports, stores, and distributes refined products, NGLs, and crude oil, as well as conducts commodity-related activities, including liquids blending and marketing activities. It serves integrated and independent exploration and production companies; other NGL and natural gas gathering and processing companies; crude oil and natural gas production companies; utilities; industrial companies; natural gasoline distributors; propane distributors; municipalities; ethanol producers; petrochemical, refining, and marketing companies; and heating fuel users, refineries, and exporters. ONEOK, Inc. was founded in 1906 and is headquartered in Tulsa, Oklahoma.