Equinor ASA (NYSE:EQNR) and Andeavor (NYSE:ANDV) are both large-cap oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.

Analyst Ratings

This is a summary of current ratings for Equinor ASA and Andeavor, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Equinor ASA 0 5 2 0 2.29
Andeavor 0 9 5 0 2.36

Andeavor has a consensus price target of $145.25, indicating a potential downside of 5.37%. Given Andeavor’s stronger consensus rating and higher probable upside, analysts plainly believe Andeavor is more favorable than Equinor ASA.

Risk & Volatility

Equinor ASA has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Andeavor has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.

Dividends

Equinor ASA pays an annual dividend of $0.67 per share and has a dividend yield of 2.5%. Andeavor pays an annual dividend of $2.36 per share and has a dividend yield of 1.5%. Equinor ASA pays out 48.6% of its earnings in the form of a dividend. Andeavor pays out 36.5% 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.

Institutional & Insider Ownership

5.2% of Equinor ASA shares are owned by institutional investors. Comparatively, 77.7% of Andeavor shares are owned by institutional investors. 7.0% of Andeavor shares are owned by company 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.

Profitability

This table compares Equinor ASA and Andeavor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Equinor ASA 6.69% 13.09% 4.68%
Andeavor 4.91% 8.52% 3.90%

Valuation and Earnings

This table compares Equinor ASA and Andeavor’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Equinor ASA $61.19 billion 1.47 $4.59 billion $1.38 19.48
Andeavor $34.98 billion 0.66 $1.53 billion $6.47 23.72

Equinor ASA has higher revenue and earnings than Andeavor. Equinor ASA is trading at a lower price-to-earnings ratio than Andeavor, indicating that it is currently the more affordable of the two stocks.

Summary

Andeavor beats Equinor ASA on 9 of the 16 factors compared between the two stocks.

Equinor ASA Company Profile

Equinor 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 & Production Norway; Development & Production USA; Development & Production International; Marketing, Midstream & Processing; New Energy Solutions; Technology, Projects & Drilling; Exploration; and Global Strategy & Business Development segments. It also transports, processes, manufactures, markets, and trades in oil and gas commodities, such as crude and condensate products, gas liquids, natural gas, and liquefied natural gas; markets and trades in electricity and emission rights; and operates refineries, processing and power plants, and terminals. In addition, the company develops wind, and carbon capture and storage projects, as well as offers other renewable energy and low-carbon energy solutions. As of December 31, 2017, it had proved oil and gas reserves of 5,367 million barrels of oil equivalent. The company was formerly known as Statoil ASA and changed its name to Equinor ASA in May 2018. Equinor ASA was founded in 1972 and is headquartered in Stavanger, Norway.

Andeavor Company Profile

Andeavor, through its subsidiaries, operates as an independent petroleum refining, logistics, and marketing company in the United States. The company operates in three segments: Marketing, Logistics, and Refining. The Marketing segment sells gasoline and diesel fuel through retail, branded, and unbranded channels. This segment operates a network of 3,255 retail stations under the ARCO, Shell, Mobil, and SUPERAMERICA brands. The Logistics segment gathers and transports crude oil by pipelines, as well as by trucks. It operates approximately 13 million barrels of crude oil, feedstock, blendstock, refined product, and asphalt storage tanks. The Refining segment buys and refines crude oil and other feed stocks into transportation fuels, such as gasoline and gasoline blend stocks, jet fuel, and diesel fuel, as well as other products, including heavy fuel oils, liquefied petroleum gas, petroleum coke, calcined coke, and asphalt. It also sells refined products in the bulk market principally to independent unbranded distributors, other refining and marketing companies, utilities, railroads, airlines, and marine and industrial end-users in the western United States. This segment owns and operates 10 petroleum refineries with a combined crude oil capacity of approximately 1,157 thousand barrels per day. The company was formerly known as Tesoro Corporation and changed its name to Andeavor in August 2017. Andeavor was founded in 1968 and is headquartered in San Antonio, Texas.

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