Alvopetro Energy (OTCMKTS:ALVOF – Get Free Report) and ONEOK (NYSE:OKE – Get Free Report) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.
Profitability
This table compares Alvopetro Energy and ONEOK’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alvopetro Energy | 42.13% | 27.90% | 19.95% |
| ONEOK | 9.29% | 16.41% | 5.48% |
Insider & Institutional Ownership
69.1% of ONEOK shares are held by institutional investors. 0.2% of ONEOK shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alvopetro Energy | 0 | 0 | 0 | 1 | 4.00 |
| ONEOK | 0 | 12 | 7 | 1 | 2.45 |
ONEOK has a consensus target price of $96.88, indicating a potential upside of 9.19%. Given ONEOK’s higher probable upside, analysts clearly believe ONEOK is more favorable than Alvopetro Energy.
Risk and Volatility
Alvopetro Energy has a beta of -0.18, meaning that its share price is 118% less volatile than the S&P 500. Comparatively, ONEOK has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.
Valuation and Earnings
This table compares Alvopetro Energy and ONEOK”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alvopetro Energy | $57.95 million | 4.60 | $23.10 million | $0.74 | 9.65 |
| ONEOK | $33.63 billion | 1.66 | $3.39 billion | $5.80 | 15.30 |
ONEOK has higher revenue and earnings than Alvopetro Energy. Alvopetro Energy is trading at a lower price-to-earnings ratio than ONEOK, indicating that it is currently the more affordable of the two stocks.
Dividends
Alvopetro Energy pays an annual dividend of $0.48 per share and has a dividend yield of 6.7%. ONEOK pays an annual dividend of $4.28 per share and has a dividend yield of 4.8%. Alvopetro Energy pays out 64.9% of its earnings in the form of a dividend. ONEOK pays out 73.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. ONEOK has increased its dividend for 3 consecutive years. Alvopetro Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
ONEOK beats Alvopetro Energy on 10 of the 17 factors compared between the two stocks.
About Alvopetro Energy
Alvopetro Energy Ltd. operates as an independent upstream and midstream operator. It engages in the acquisition, exploration, development, and production of hydrocarbons. The company holds interests in the Caburé and Murucututu natural gas assets, Block 182 and 183 exploration assets, and Bom Lugar and Mãe-da-lua oil fields, which covers an area of approximately 22,166 acres in the Recôncavo basin onshore Brazil. Alvopetro Energy Ltd. was incorporated in 2013 and is headquartered in Calgary, Canada.
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.
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