ONEOK (NYSE:OKE) and Corning Natural Gas (OTCMKTS:CNIG) are both utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Insider and Institutional Ownership

73.2% of ONEOK shares are held by institutional investors. Comparatively, 4.3% of Corning Natural Gas shares are held by institutional investors. 0.5% of ONEOK shares are held by company insiders. Comparatively, 30.5% of Corning Natural Gas shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for ONEOK and Corning Natural Gas, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ONEOK 0 8 9 0 2.53
Corning Natural Gas 0 0 0 0 N/A

ONEOK currently has a consensus target price of $70.38, suggesting a potential upside of 18.54%. Given ONEOK’s higher possible upside, equities research analysts clearly believe ONEOK is more favorable than Corning Natural Gas.

Dividends

ONEOK pays an annual dividend of $3.42 per share and has a dividend yield of 5.8%. Corning Natural Gas pays an annual dividend of $0.56 per share and has a dividend yield of 3.0%. ONEOK pays out 194.3% 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 increased its dividend for 15 consecutive years. ONEOK is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares ONEOK and Corning Natural Gas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ONEOK 6.96% 16.32% 6.24%
Corning Natural Gas 7.18% 8.15% 2.49%

Valuation and Earnings

This table compares ONEOK and Corning 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 2.01 $387.84 million $1.76 33.73
Corning Natural Gas $30.04 million 1.87 $2.10 million N/A N/A

ONEOK has higher revenue and earnings than Corning Natural Gas.

Risk & Volatility

ONEOK has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Corning Natural Gas has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500.

Summary

ONEOK beats Corning Natural Gas on 11 of the 14 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.

Corning Natural Gas Company Profile

Corning Natural Gas Holding Corporation, through its subsidiaries, distributes natural gas and electricity. The company offers natural gas to approximately 15,000 customers through approximately 425 miles of distribution main and 86 regulating stations; and electricity to approximately 4,600 customers through approximately 160 miles of electric distribution wire and poles, and 21 miles of gas distribution pipe. It also transports and compresses gas for a gas producer from its gathering network into an interstate pipeline. The company serves residential, commercial, industrial, and municipal customers in the Corning, Hammondsport, and Virgil areas, as well as in Pike county; and distributes to two other gas utilities that serve the Elmira and Bath areas of New York. Corning Natural Gas Holding Corporation was founded in 1904 and is headquartered in Corning, New York.

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