Investors interested in Oil and Gas - Production Pipeline - MLB stocks are likely familiar with Enterprise Products Partners (EPD) and Oneok Inc. (OKE). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, Enterprise Products Partners has a Zacks Rank of #2 (Buy), while Oneok Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that EPD likely has seen a stronger improvement to its earnings outlook than OKE has recently. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.

EPD currently has a forward P/E ratio of 11.54, while OKE has a forward P/E of 17.72. We also note that EPD has a PEG ratio of 1.37. 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 4.04.

Another notable valuation metric for EPD is its P/B ratio of 2.49. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, OKE has a P/B of 2.65.

These metrics, and several others, help EPD earn a Value grade of B, while OKE has been given a Value grade of C.

EPD has seen stronger estimate revision activity and sports more attractive valuation metrics than OKE, so it seems like value investors will conclude that EPD is the superior option right now.

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Enterprise Products Partners L.P. (EPD) : 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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