Suncor Energy (NYSE: SU) is one of 38 publicly-traded companies in the “Oil & Gas Refining and Marketing” industry, but how does it contrast to its rivals? We will compare Suncor Energy to similar businesses based on the strength of its analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Volatility and Risk

Suncor Energy has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Suncor Energy ‘s rivals have a beta of 1.30, indicating that their average share price is 30% more volatile than the S&P 500.

Profitability

This table compares Suncor Energy and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Suncor Energy 8.85% 4.52% 2.29%
Suncor Energy Competitors -1.41% 1.87% 1.32%

Dividends

Suncor Energy pays an annual dividend of $1.03 per share and has a dividend yield of 3.1%. Suncor Energy pays out 84.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & Gas Refining and Marketing” companies pay a dividend yield of 5.1% and pay out 864.8% of their earnings in the form of a dividend.

Insider & Institutional Ownership

64.0% of Suncor Energy shares are owned by institutional investors. Comparatively, 47.2% of shares of all “Oil & Gas Refining and Marketing” companies are owned by institutional investors. 1.0% of Suncor Energy shares are owned by company insiders. Comparatively, 11.7% of shares of all “Oil & Gas Refining and Marketing” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Suncor Energy and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Suncor Energy $24.94 billion $7.59 billion 27.55
Suncor Energy Competitors $45.68 billion $4.44 billion 22.77

Suncor Energy ‘s rivals have higher revenue, but lower earnings than Suncor Energy . Suncor Energy is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Suncor Energy and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Suncor Energy 0 3 14 1 2.89
Suncor Energy Competitors 368 1729 2146 109 2.46

Suncor Energy currently has a consensus target price of $44.36, suggesting a potential upside of 31.97%. As a group, “Oil & Gas Refining and Marketing” companies have a potential upside of 10.31%. Given Suncor Energy ‘s stronger consensus rating and higher probable upside, research analysts clearly believe Suncor Energy is more favorable than its rivals.

Summary

Suncor Energy beats its rivals on 11 of the 15 factors compared.

About Suncor Energy

Suncor Energy Inc. (Suncor) is an integrated energy company. The Company is focused on developing Canada’s petroleum resource basin, Athabasca oil sands. The Company operates in three business segments: Oil Sands, Exploration and Production (E&P), and Refining and Marketing. The Company’s Oil Sands segment includes Oil Sands operations and Oil Sands ventures operations. Its E&P segment consists of offshore operations off the east coast of Canada and in the North Sea, and onshore assets in North America, Libya and Syria. The Company’s Refining and Marketing segment is engaged in Refining and Supply, and Marketing operations. In addition, it explores for, acquires, develops, produces and markets crude oil and natural gas in Canada and internationally. It transports and refines crude oil, and markets petroleum and petrochemical products primarily in Canada. It markets third-party petroleum products. Suncor also conducts energy trading activities.

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