Sunoco (NYSE:SUN – Get Free Report) and Baytex Energy (OTCMKTS:BTEGF – Get Free Report) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
Insider & Institutional Ownership
24.3% of Sunoco shares are held by institutional investors. 0.8% of Baytex Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings for Sunoco and Baytex Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sunoco | 0 | 1 | 8 | 1 | 3.00 |
| Baytex Energy | 0 | 2 | 1 | 0 | 2.33 |
Valuation and Earnings
This table compares Sunoco and Baytex Energy”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sunoco | $25.20 billion | 0.61 | $527.00 million | $4.52 | 16.57 |
| Baytex Energy | $2.79 billion | 0.89 | $1.29 billion | $1.47 | 3.10 |
Baytex Energy has lower revenue, but higher earnings than Sunoco. Baytex Energy is trading at a lower price-to-earnings ratio than Sunoco, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Sunoco and Baytex Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sunoco | 2.88% | 18.78% | 4.29% |
| Baytex Energy | 38.28% | 40.85% | 20.18% |
Volatility and Risk
Sunoco has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500. Comparatively, Baytex Energy has a beta of 2.16, meaning that its stock price is 116% more volatile than the S&P 500.
Summary
Sunoco beats Baytex Energy on 8 of the 15 factors compared between the two stocks.
About Sunoco
Sunoco LP, together with its subsidiaries, distributes and retails motor fuels in the United States. It operates through two segments: Fuel Distribution and Marketing, and All Other. The Fuel Distribution and Marketing segment purchases motor fuel, as well as other petroleum products, such as propane and lubricating oil from independent refiners and oil companies and supplies it to company-operated retail stores, independently operated commission agents, and retail stores, as well as other commercial customers, including unbranded retail stores, other fuel distributors, school districts, municipalities, and other industrial customers. It owns and operates retail stores under the APlus and Aloha Island Mart brand names; and offers food, beverages, snacks, grocery and non-food merchandise, motor fuels, and other services. The All Other segment includes partnership credit card services, franchise royalties, and retail operations; and offers credit card processing, car washes, lottery, automated teller machines, money order, prepaid phone cards, and wireless services. The company was formerly known as Susser Petroleum Partners LP and changed its name to Sunoco LP in 2014. Sunoco LP was founded in 1886 and is headquartered in Dallas, Texas.
About Baytex Energy
Baytex Energy Corp. operates as an oil & gas exploration and production company. It engages in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. The company was founded in 1993 and is headquartered in Calgary, Canada.
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