Critical Review: YPF Sociedad Anonima (YPF) & Cenovus Energy (CVE)
YPF Sociedad Anonima (NYSE: YPF) and Cenovus Energy (NYSE:CVE) are both mid-cap oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.
Volatility and Risk
YPF Sociedad Anonima has a beta of 2.1, meaning that its share price is 110% more volatile than the S&P 500. Comparatively, Cenovus Energy has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.
This table compares YPF Sociedad Anonima and Cenovus Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|YPF Sociedad Anonima||-12.86%||-4.17%||-1.18%|
Insider and Institutional Ownership
29.3% of YPF Sociedad Anonima shares are owned by institutional investors. Comparatively, 54.9% of Cenovus Energy shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
YPF Sociedad Anonima pays an annual dividend of $0.07 per share and has a dividend yield of 0.3%. Cenovus Energy pays an annual dividend of $0.16 per share and has a dividend yield of 1.4%. YPF Sociedad Anonima pays out -1.4% of its earnings in the form of a dividend. Cenovus Energy pays out 8.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
This is a summary of recent ratings and price targets for YPF Sociedad Anonima and Cenovus Energy, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|YPF Sociedad Anonima||0||0||4||0||3.00|
YPF Sociedad Anonima currently has a consensus price target of $26.75, indicating a potential upside of 10.95%. Cenovus Energy has a consensus price target of $16.79, indicating a potential upside of 47.37%. Given Cenovus Energy’s higher probable upside, analysts plainly believe Cenovus Energy is more favorable than YPF Sociedad Anonima.
Earnings & Valuation
This table compares YPF Sociedad Anonima and Cenovus Energy’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|YPF Sociedad Anonima||$14.27 billion||0.66||-$1.91 billion||($4.85)||-4.97|
|Cenovus Energy||$9.09 billion||1.54||-$411.58 million||$1.98||5.75|
Cenovus Energy has higher revenue, but lower earnings than YPF Sociedad Anonima. YPF Sociedad Anonima is trading at a lower price-to-earnings ratio than Cenovus Energy, indicating that it is currently the more affordable of the two stocks.
Cenovus Energy beats YPF Sociedad Anonima on 10 of the 14 factors compared between the two stocks.
About YPF Sociedad Anonima
YPF Sociedad Anonima (YPF) is an energy company. The Company is operating a fully integrated oil and gas chain. The Company operates through the segments, including Exploration and Production, Downstream, and Corporate and Other. The Company’s Exploration and Production segment includes exploration and production activities, natural gas and crude oil purchases, sales of natural gas, and to a lesser extent crude oil, to third parties and intersegment sales of crude oil, natural gas and its byproducts. The Company’s Downstream segment is engaged in the refining, transport, purchase of crude oil and natural gas from third parties and intersegment sales, and marketing of crude oil, natural gas, refined products, petrochemicals, electric power generation and natural gas distribution. The Company’s Corporate and Other segment carries out other activities.
About Cenovus Energy
Cenovus Energy Inc is a Canada-based integrated oil company. It operates in the business of developing, producing and marketing crude oil, Natural Gas Liquids (NGLs) and natural gas in Canada. The Company also conducts marketing activities and owns refining interests in the United States (U.S.). Its segments include: Oil Sands, which includes the development and production of bitumen and natural gas in northeast Alberta; Conventional, which includes the development and production of conventional crude oil, NGLs and natural gas in Alberta and Saskatchewan, including the heavy oil assets at Pelican Lake, the carbon dioxide (CO2) enhanced oil recovery (EOR) project at Weyburn and emerging tight oil opportunities; Refining and Marketing, which includes transporting and selling crude oil and natural gas and joint ownership of refineries in the U.S., as well as Corporate and Eliminations.
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