Investors looking for stocks in the Oil and Gas - Production Pipeline - MLB sector might want to consider either Enterprise Products Partners (EPD) or 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.

Enterprise Products Partners and Oneok Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that EPD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

EPD currently has a forward P/E ratio of 11.49, while OKE has a forward P/E of 16.40. We also note that EPD has a PEG ratio of 1.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. OKE currently has a PEG ratio of 3.73.

Another notable valuation metric for EPD is its P/B ratio of 2.45. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, OKE has a P/B of 3.38.

These are just a few of the metrics contributing to EPD's Value grade of B and OKE's 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

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