Contrasting ONEOK (NYSE:OKE) and Baytex Energy (OTCMKTS:BTEGF)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Baytex Energy	$2.79 billion	1.01	$1.29 billion	$1.47	3.52
ONEOK	$33.63 billion	1.73	$3.39 billion	$5.80	15.95

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 Ratings

This is a summary of current ratings for Baytex Energy and ONEOK, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Baytex Energy	0	2	1	0	2.33
ONEOK	0	12	6	1	2.42

ONEOK has a consensus price target of $96.06, indicating a potential upside of 3.83%. Given ONEOK’s stronger consensus rating and higher probable upside, analysts plainly believe ONEOK is more favorable than Baytex Energy.

Insider and Institutional Ownership

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

Profitability

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

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

Risk and Volatility

Baytex Energy has a beta of 2.16, meaning that its share price is 116% more 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.

Summary

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

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.

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.