Head to Head Analysis: Statoil (STO) and ConocoPhillips (COP)
Statoil (NYSE: STO) and ConocoPhillips (NYSE:COP) are both large-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.
Institutional and Insider Ownership
5.1% of Statoil shares are owned by institutional investors. Comparatively, 71.2% of ConocoPhillips shares are owned by institutional investors. 0.9% of ConocoPhillips shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Statoil has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, ConocoPhillips has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.
This table compares Statoil and ConocoPhillips’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Statoil and ConocoPhillips’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Statoil||$61.19 billion||1.39||$4.59 billion||$1.38||18.54|
|ConocoPhillips||$32.58 billion||2.28||-$855.00 million||$0.60||105.40|
Statoil has higher revenue and earnings than ConocoPhillips. Statoil is trading at a lower price-to-earnings ratio than ConocoPhillips, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Statoil and ConocoPhillips, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Statoil presently has a consensus price target of $21.00, suggesting a potential downside of 17.90%. ConocoPhillips has a consensus price target of $59.85, suggesting a potential downside of 5.37%. Given ConocoPhillips’ stronger consensus rating and higher possible upside, analysts clearly believe ConocoPhillips is more favorable than Statoil.
Statoil pays an annual dividend of $0.54 per share and has a dividend yield of 2.1%. ConocoPhillips pays an annual dividend of $1.14 per share and has a dividend yield of 1.8%. Statoil pays out 39.1% of its earnings in the form of a dividend. ConocoPhillips pays out 190.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Statoil has raised its dividend for 5 consecutive years. Statoil is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Statoil beats ConocoPhillips on 9 of the 17 factors compared between the two stocks.
Statoil ASA, an energy company, explores for, produces, transports, refines, and markets petroleum and petroleum-derived products, and other forms of energy in Norway and internationally. The company operates through Development and Production Norway; Development and Production International; Marketing, Midstream and Processing; and Other segments. The company also transports, processes, manufactures, markets, and trades oil and gas commodities, such as crude, condensate, gas liquids, products, natural gas, and liquefied natural gas (LNG); markets and trades electricity and emission rights; and operates refineries, gas processing plants, LNG plant, methanol plant, and crude oil terminals. In addition, the company develops offshore wind, and carbon capture and storage projects, as well as offers other renewable energy and low-carbon energy solutions. As of December 31, 2016, it had proved reserves of 5,013 million barrels of oil equivalent. The company was formerly known as StatoilHydro ASA and changed its name to Statoil ASA in November 2009. Statoil ASA was founded in 1972 and is headquartered in Stavanger, Norway.
ConocoPhillips is an independent exploration and production company. The Company explores for, produces, transports and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG) and natural gas liquids. The Company operates through five segments: Alaska, Lower 48, Canada, Europe and North Africa, Asia Pacific and Middle East, and Other International. The Alaska segment explores for, produces, transports and markets crude oil, natural gas liquids, natural gas and LNG. The Lower 48 segment consists of operations located in the United States Lower 48 states and the Gulf of Mexico. Its Canadian operations consists of oil sands developments in the Athabasca Region of northeastern Alberta. The Europe and North Africa segment consists of operations and exploration activities in Norway, the United Kingdom and Libya. The Asia Pacific and Middle East segment has exploration and production operations in China, Indonesia, Malaysia and Australia.
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