Analyzing BP p.l.c. (BP) & Suncor Energy (NYSE:SU)
BP p.l.c. (NYSE: BP) and Suncor Energy (NYSE:SU) are both large-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitabiliy, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.
This table compares BP p.l.c. and Suncor Energy ‘s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
10.0% of BP p.l.c. shares are held by institutional investors. Comparatively, 65.2% of Suncor Energy shares are held by institutional investors. 1.0% of BP p.l.c. shares are held by company insiders. Comparatively, 1.0% of Suncor Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares BP p.l.c. and Suncor Energy ‘s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|BP p.l.c.||$199.71 billion||0.57||$19.73 billion||$0.65||53.69|
|Suncor Energy||$22.92 billion||2.27||$6.61 billion||$0.67||46.54|
BP p.l.c. has higher revenue and earnings than Suncor Energy . Suncor Energy is trading at a lower price-to-earnings ratio than BP p.l.c., indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and price targets for BP p.l.c. and Suncor Energy , as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
BP p.l.c. currently has a consensus price target of $36.30, indicating a potential upside of 4.00%. Suncor Energy has a consensus price target of $42.86, indicating a potential upside of 37.45%. Given Suncor Energy ‘s stronger consensus rating and higher possible upside, analysts clearly believe Suncor Energy is more favorable than BP p.l.c..
BP p.l.c. pays an annual dividend of $2.38 per share and has a dividend yield of 6.8%. Suncor Energy pays an annual dividend of $0.95 per share and has a dividend yield of 3.0%. BP p.l.c. pays out 366.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Suncor Energy pays out 141.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility & Risk
BP p.l.c. has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Suncor Energy has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.
Suncor Energy beats BP p.l.c. on 11 of the 16 factors compared between the two stocks.
About BP p.l.c.
BP p.l.c. is an integrated oil and gas company. The Company owns an interest in OJSC Oil Company Rosneft (Rosneft), an oil and gas company. The Company’s segments include Upstream, Downstream, Rosneft, and Other businesses and corporate. The Upstream segment is engaged in oil and natural gas exploration, field development and production, as well as midstream transportation, storage and processing. The Downstream segment has global manufacturing and marketing operations. The Rosneft segment has a resource base of hydrocarbons onshore and offshore. The Other businesses and corporate segment comprises the biofuels and wind businesses, shipping and treasury functions, and corporate activities around the world. The Company provides its customers with fuel for transportation, energy for heat and light, lubricants to keep engines moving and the petrochemicals products used to make everyday items as diverse as paints, clothes and packaging.
About Suncor Energy
Suncor Energy Inc. (Suncor) is an integrated energy company. The Company is focused on developing Canada’s petroleum resource basin, Athabasca oil sands. The Company operates in three business segments: Oil Sands, Exploration and Production (E&P), and Refining and Marketing. The Company’s Oil Sands segment includes Oil Sands operations and Oil Sands ventures operations. Its E&P segment consists of offshore operations off the east coast of Canada and in the North Sea, and onshore assets in North America, Libya and Syria. The Company’s Refining and Marketing segment is engaged in Refining and Supply, and Marketing operations. In addition, it explores for, acquires, develops, produces and markets crude oil and natural gas in Canada and internationally. It transports and refines crude oil, and markets petroleum and petrochemical products primarily in Canada. It markets third-party petroleum products. Suncor also conducts energy trading activities.
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