Statoil ASA (NYSE: STO) and RDS-A (NASDAQ:RDS-A) are both large-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitabiliy, dividends, institutional ownership, risk and earnings.

Profitability

This table compares Statoil ASA and RDS-A’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Statoil ASA -6.37% -0.53% -0.19%
RDS-A N/A N/A N/A

Institutional and Insider Ownership

5.1% of Statoil ASA shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Statoil ASA and RDS-A’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Statoil ASA $51.07 billion 1.10 $15.78 billion ($0.92) -18.95
RDS-A $256.83 billion 0.85 $33.47 billion N/A N/A

RDS-A has higher revenue and earnings than Statoil ASA.

Dividends

Statoil ASA pays an annual dividend of $0.85 per share and has a dividend yield of 4.9%. RDS-A does not pay a dividend. Statoil ASA pays out -92.4% of its earnings in the form of a dividend. RDS-A has raised its dividend for 4 consecutive years.

Analyst Ratings

This is a summary of current recommendations and price targets for Statoil ASA and RDS-A, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Statoil ASA 4 3 7 0 2.21
RDS-A 2 1 9 0 2.58

Statoil ASA presently has a consensus target price of $17.88, suggesting a potential upside of 2.58%. RDS-A has a consensus target price of $57.50, suggesting a potential upside of 7.06%. Given RDS-A’s stronger consensus rating and higher probable upside, analysts clearly believe RDS-A is more favorable than Statoil ASA.

Summary

RDS-A beats Statoil ASA on 9 of the 13 factors compared between the two stocks.

Statoil ASA Company Profile

Statoil ASA (Statoil) is an energy company. The Company is engaged in oil and gas exploration and production activities. The Company’s segments include Development and Production Norway (DPN), Development and Production International (DPI), Marketing, Midstream and Processing (MMP) and Other. DPN segment manages the Company’s upstream activities on the Norwegian continental shelf (NCS) and explores for and extracts crude oil, natural gas and natural gas liquids. DPI segment manages the Company’s upstream activities that are not included in the DPN and Development and Production USA (DPUSA) business areas. MMP segment manages its marketing and trading activities related to oil products and natural gas, transportation, processing and manufacturing, and the development of oil and gas. Other segment includes activities in New Energy Solutions (NES), Technology, Projects and Drilling (TPD), Global Strategy and Business Development (GSB), and Corporate staffs and support functions.

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