ET or OKE: Which Is the Better Value Stock Right Now?

By Zacks Equity Research | July 01, 2025, 11:40 AM

Investors with an interest in Oil and Gas - Production Pipeline - MLB stocks have likely encountered both Energy Transfer LP (ET) and Oneok Inc. (OKE). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Energy Transfer LP has a Zacks Rank of #2 (Buy), while Oneok Inc. has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that ET likely has seen a stronger improvement to its earnings outlook than OKE has recently. But this is just one factor that value investors are interested in.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

ET currently has a forward P/E ratio of 12.61, while OKE has a forward P/E of 15.60. We also note that ET has a PEG ratio of 0.59. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. OKE currently has a PEG ratio of 1.65.

Another notable valuation metric for ET is its P/B ratio of 1.47. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, OKE has a P/B of 2.31.

These are just a few of the metrics contributing to ET's Value grade of A and OKE's Value grade of C.

ET is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ET is likely the superior value option right now.

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Energy Transfer LP (ET): Free Stock Analysis Report
 
ONEOK, Inc. (OKE): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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