Investors interested in Oil and Gas - Production Pipeline - MLB stocks are likely familiar with 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Energy Transfer LP and Oneok Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ET is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

ET currently has a forward P/E ratio of 12.53, while OKE has a forward P/E of 16.23. We also note that ET has a PEG ratio of 0.59. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. OKE currently has a PEG ratio of 1.72.

Another notable valuation metric for ET is its P/B ratio of 1.46. 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 2.42.

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

ET sticks out from OKE in both our Zacks Rank and Style Scores models, so value investors will likely feel that ET is the better 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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