QEP Resources (NYSE: QEP) and TotalFinaElf, (NYSE:TOT) are both mid-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitabiliy, analyst recommendations, dividends, institutional ownership, valuation and risk.

Dividends

TotalFinaElf, pays an annual dividend of $2.34 per share and has a dividend yield of 4.7%. QEP Resources does not pay a dividend. TotalFinaElf, pays out 78.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares QEP Resources and TotalFinaElf,’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QEP Resources -19.81% -4.78% -2.35%
TotalFinaElf, 4.71% 12.13% 5.37%

Volatility and Risk

QEP Resources has a beta of 1.71, suggesting that its stock price is 71% more volatile than the S&P 500. Comparatively, TotalFinaElf, has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for QEP Resources and TotalFinaElf,, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QEP Resources 0 6 6 1 2.62
TotalFinaElf, 0 9 3 1 2.38

QEP Resources presently has a consensus target price of $18.36, indicating a potential upside of 103.59%. TotalFinaElf, has a consensus target price of $53.00, indicating a potential upside of 6.68%. Given QEP Resources’ stronger consensus rating and higher probable upside, equities research analysts clearly believe QEP Resources is more favorable than TotalFinaElf,.

Insider & Institutional Ownership

92.3% of QEP Resources shares are owned by institutional investors. Comparatively, 6.2% of TotalFinaElf, shares are owned by institutional investors. 1.4% of QEP Resources shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares QEP Resources and TotalFinaElf,’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
QEP Resources $1.54 billion 1.41 $483.20 million ($1.35) -6.68
TotalFinaElf, $136.50 billion 0.89 $22.09 billion $2.98 16.67

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

Summary

QEP Resources beats TotalFinaElf, on 8 of the 15 factors compared between the two stocks.

QEP Resources Company Profile

QEP Resources, Inc. is an independent crude oil and natural gas exploration and production company. The Company focuses on two regions of the United States: the Northern Region (primarily in North Dakota, Wyoming and Utah) and the Southern Region (primarily in Texas and Louisiana). The Company conducts exploration and production activities in North America’s hydrocarbon resource plays. The Company has an inventory of developed and undeveloped drilling locations in the Permian Basin in western Texas, the Williston Basin in North Dakota, Haynesville/Cotton Valley in northwestern Louisiana, the Pinedale Anticline (Pinedale) in western Wyoming, the Uinta Basin in eastern Utah and other properties in Wyoming, Utah and Colorado. It sells gas volumes to wholesale marketers, industrial users, local distribution companies and utilities. It sells oil and natural gas liquid (NGL) volumes to refiners, marketers and other companies.

TotalFinaElf, Company Profile

Total S.A. (Total) is an oil and gas company. The Company has three segments: an Upstream segment, including the activities of the exploration and production of hydrocarbons, and the activities of gas and power; a Refining & Chemicals segment constituting an industrial hub consisting of the activities of refining, petrochemicals and specialty chemicals, and also includes the activities of oil trading and shipping, and a Marketing & Services segment, including the activities of supply and marketing in the field of petroleum products, as well as the activity of New Energies. Its Corporate segment includes holdings operating and financial activities. The Company operates in the renewable energies and power generation sectors. It is engaged in various sectors of oil and gas industry, including upstream (hydrocarbon exploration, development and production) and downstream (refining, petrochemicals, specialty chemicals, trading and shipping of crude oil and petroleum products and marketing).

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