ONEOK (NYSE: OKE) and Just Energy Group (NYSE:JE) are both utilities companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.
ONEOK pays an annual dividend of $3.08 per share and has a dividend yield of 5.4%. Just Energy Group pays an annual dividend of $0.39 per share and has a dividend yield of 8.8%. ONEOK pays out 231.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Just Energy Group pays out 57.4% of its earnings in the form of a dividend. ONEOK has increased its dividend for 2 consecutive years and Just Energy Group has increased its dividend for 15 consecutive years. Just Energy Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares ONEOK and Just Energy Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Just Energy Group||5.74%||-214.69%||23.59%|
Risk & Volatility
ONEOK has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Just Energy Group has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500.
This is a summary of recent recommendations and price targets for ONEOK and Just Energy Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Just Energy Group||0||1||6||0||2.86|
ONEOK presently has a consensus target price of $60.08, suggesting a potential upside of 5.87%. Just Energy Group has a consensus target price of $7.75, suggesting a potential upside of 75.34%. Given Just Energy Group’s stronger consensus rating and higher possible upside, analysts clearly believe Just Energy Group is more favorable than ONEOK.
Earnings and Valuation
This table compares ONEOK and Just Energy Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ONEOK||$12.17 billion||1.91||$387.84 million||$1.33||42.67|
|Just Energy Group||$2.84 billion||0.23||$340.07 million||$0.68||6.50|
ONEOK has higher revenue and earnings than Just Energy Group. Just Energy Group is trading at a lower price-to-earnings ratio than ONEOK, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
68.4% of ONEOK shares are held by institutional investors. Comparatively, 30.7% of Just Energy Group shares are held by institutional investors. 1.0% of ONEOK shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
ONEOK beats Just Energy Group on 10 of the 17 factors compared between the two stocks.
ONEOK, Inc. is an energy midstream service provider in the United States. The Company owns and operates natural gas liquids (NGL) systems, and is engaged in the gathering, processing, storage and transportation of natural gas. THe Company’s operations include a 38,000-mile integrated network of NGL and natural gas pipelines, processing plants, fractionators and storage facilities in the Mid-Continent, Williston, Permian and Rocky Mountain regions. The Company operates through three business segments. The Natural Gas Gathering and Processing segment provides midstream services to contracted producers in North Dakota, Montana, Wyoming, Kansas and Oklahoma. The Natural Gas Liquids segment owns and operates facilities that gather, fractionate, treat and distribute NGLs and store NGL products primarily in the Mid-Continental, Permian Basin and the Rocky Mountain regions. The Natural Gas Pipelines segment provides transportation and storage services to end users.
About Just Energy Group
Just Energy Group Inc. (Just Energy) is an energy management solutions provider engaged in electricity, natural gas, solar and green energy. The Company’s segments include Consumer Energy and Commercial Energy. The Company operates in the United States, Canada and the United Kingdom, offering a range of energy products, including long-term fixed-price, variable rate and flat bill programs; home energy management services, including smart thermostats and tools to manage energy use at the appliance level, and residential solar panel installations. It markets under the brands, such as Just Energy, Hudson Energy, Amigo Energy, GreenStar Energy, Just Solar, Tara Energy and TerraPass. Just Energy’s commercial business is operated primarily through Hudson Energy. Hudson Energy offers fixed and variable rate natural gas and electricity contracts, as well as customized products. Just Energy also offers green products through its JustGreen Electricity and Natural Gas and TerraPass programs.
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