ONEOK (NYSE:OKE) vs. Baytex Energy (OTCMKTS:BTEGF) Critical Comparison

ONEOK (NYSE:OKE) and Baytex Energy (OTCMKTS:BTEGF) are both energy companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Valuation and Earnings

This table compares ONEOK and Baytex Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ONEOK	$33.63 billion	1.80	$3.39 billion	$5.80	16.54
Baytex Energy	$2.79 billion	0.95	$1.29 billion	$1.47	3.33

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for ONEOK and Baytex Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ONEOK	0	11	6	1	2.44
Baytex Energy	0	2	1	0	2.33

ONEOK currently has a consensus target price of $95.94, indicating a potential upside of 0.01%. Given ONEOK’s stronger consensus rating and higher possible upside, equities analysts plainly believe ONEOK is more favorable than Baytex Energy.

Profitability

This table compares ONEOK and Baytex Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ONEOK	9.29%	16.41%	5.48%
Baytex Energy	38.28%	40.85%	20.18%

Institutional and Insider Ownership

69.1% of ONEOK shares are owned by institutional investors. 0.2% of ONEOK shares are owned by company insiders. Comparatively, 0.8% of Baytex Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

ONEOK has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, Baytex Energy has a beta of 2.16, meaning that its share price is 116% more volatile than the S&P 500.

Summary

ONEOK beats Baytex Energy on 10 of the 15 factors compared between the two stocks.

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.

About Baytex Energy

Baytex Energy Corp. operates as an oil & gas exploration and production company. It engages in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. The company was founded in 1993 and is headquartered in Calgary, Canada.