Clean Energy Fuels (NASDAQ: CLNE) and BP (NYSE:BP) are both utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, risk, profitability and valuation.

Dividends

BP pays an annual dividend of $2.38 per share and has a dividend yield of 6.0%. Clean Energy Fuels does not pay a dividend. BP pays out 203.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

35.5% of Clean Energy Fuels shares are held by institutional investors. Comparatively, 10.0% of BP shares are held by institutional investors. 26.7% of Clean Energy Fuels shares are held by company insiders. Comparatively, 1.0% of BP shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Clean Energy Fuels and BP’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Clean Energy Fuels -15.47% -10.52% -6.31%
BP 1.70% 4.52% 1.68%

Earnings and Valuation

This table compares Clean Energy Fuels and BP’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Clean Energy Fuels $402.66 million 0.77 -$12.15 million ($0.37) -5.57
BP $186.61 billion 0.70 $115.00 million $1.17 33.88

BP has higher revenue and earnings than Clean Energy Fuels. Clean Energy Fuels is trading at a lower price-to-earnings ratio than BP, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Clean Energy Fuels and BP, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clean Energy Fuels 0 0 0 0 N/A
BP 2 7 9 0 2.39

BP has a consensus target price of $38.11, indicating a potential downside of 3.85%. Given BP’s higher probable upside, analysts plainly believe BP is more favorable than Clean Energy Fuels.

Risk and Volatility

Clean Energy Fuels has a beta of 1.85, indicating that its share price is 85% more volatile than the S&P 500. Comparatively, BP has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Summary

BP beats Clean Energy Fuels on 9 of the 14 factors compared between the two stocks.

About Clean Energy Fuels

Clean Energy Fuels Corp. (Clean Energy) is a provider of natural gas as an alternative fuel for vehicle fleets in the United States and Canada. The Company is engaged in supplying compressed natural gas (CNG), liquefied natural gas (LNG) and renewable natural gas (RNG) for light, medium and heavy-duty vehicles, and providing operation and maintenance (O&M) services for natural gas fueling stations. The Company designs, builds, operates and maintains fueling stations; manufactures, sells and services non-lubricated natural gas fueling compressors and other equipment used in CNG stations and LNG stations; offers assessment, design and modification solutions to provide operators with code-compliant service and maintenance facilities for natural gas vehicle fleets, and transports and sells CNG and LNG to industrial and institutional energy users having no direct access to natural gas pipelines, among others.

About BP

BP p.l.c. is an integrated oil and gas company. The Company owns an interest in OJSC Oil Company Rosneft (Rosneft), an oil and gas company. The Company’s segments include Upstream, Downstream, Rosneft, and Other businesses and corporate. The Upstream segment is engaged in oil and natural gas exploration, field development and production, as well as midstream transportation, storage and processing. The Downstream segment has global manufacturing and marketing operations. The Rosneft segment has a resource base of hydrocarbons onshore and offshore. The Other businesses and corporate segment comprises the biofuels and wind businesses, shipping and treasury functions, and corporate activities around the world. The Company provides its customers with fuel for transportation, energy for heat and light, lubricants to keep engines moving and the petrochemicals products used to make everyday items as diverse as paints, clothes and packaging.

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