ENI S.p.A. (NYSE: E) and InterOil (NYSE:IOC) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitabiliy, valuation, institutional ownership, dividends, risk and earnings.

Earnings and Valuation

This table compares ENI S.p.A. and InterOil’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ENI S.p.A. $67.75 billion 0.80 $11.18 billion $0.14 217.09
InterOil N/A N/A N/A ($3.70) -13.07

ENI S.p.A. has higher revenue and earnings than InterOil. InterOil is trading at a lower price-to-earnings ratio than ENI S.p.A., indicating that it is currently the more affordable of the two stocks.

Dividends

ENI S.p.A. pays an annual dividend of $1.27 per share and has a dividend yield of 4.2%. InterOil does not pay a dividend. ENI S.p.A. pays out 907.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of current recommendations for ENI S.p.A. and InterOil, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ENI S.p.A. 4 2 4 0 2.00
InterOil 0 2 0 0 2.00

InterOil has a consensus price target of $51.00, suggesting a potential upside of 5.46%. Given InterOil’s higher probable upside, analysts plainly believe InterOil is more favorable than ENI S.p.A..

Volatility and Risk

ENI S.p.A. has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, InterOil has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500.

Profitability

This table compares ENI S.p.A. and InterOil’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ENI S.p.A. 0.39% 0.73% 0.31%
InterOil -233.48% -14.08% -8.85%

Institutional and Insider Ownership

1.7% of ENI S.p.A. shares are held by institutional investors. Comparatively, 46.6% of InterOil shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

ENI S.p.A. beats InterOil on 7 of the 11 factors compared between the two stocks.

About ENI S.p.A.

Eni SpA (Eni) is engaged in the exploration, development and production of hydrocarbons, in the supply and marketing of gas, liquefied natural gas (LNG) and power, in the refining and marketing of petroleum products, in the production and marketing of basic petrochemicals, plastics and elastomers and in commodity trading. The Company’s segments include Exploration & Production, Gas & Power, and Refining & Marketing. Its Exploration & Production segment engages in oil and natural gas exploration and field development and production, as well as LNG operations in over 40 countries, including Italy, Libya, Egypt, Norway, the United Kingdom, Angola, Congo, Nigeria, the United States, Kazakhstan, Algeria, Australia, Venezuela, Iraq, Ghana and Mozambique. Its Gas & Power segment engages in supply, trading and marketing of gas, LNG and electricity, international gas transport activities and commodity trading and derivatives. As of December 31, 2016, Eni had operations in 73 countries.

About InterOil

InterOil Corporation (InterOil) is an oil and gas business with a sole focus on Papua New Guinea (PNG). The Company’s segments include Upstream and Corporate. The Upstream segment includes exploration, appraisal and development of hydrocarbon structures in PNG. The Corporate segment provides support to the Company’s other business segments through business development and improvement activities, general services, administration, human resources, executive management, financing and treasury, government affairs and investor relations. InterOil holds interests across over four exploration and approximately two production retention licenses in the Eastern Papuan Basin of Papua New Guinea. Its assets include the Elk, Antelope, Triceratops, Raptor and Bobcat fields in the Gulf Province of Papua New Guinea, and exploration licenses covering approximately 16,000 square kilometers (over four million acres) in Papua New Guinea.

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