Tesoro Corporation (NYSE: ANDV) and Suncor Energy (NYSE:SU) are both large-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Profitability

This table compares Tesoro Corporation and Suncor Energy ‘s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tesoro Corporation 1.22% 5.24% 2.27%
Suncor Energy 8.85% 4.52% 2.29%

Volatility & Risk

Tesoro Corporation has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500. Comparatively, Suncor Energy has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Institutional and Insider Ownership

77.5% of Tesoro Corporation shares are owned by institutional investors. Comparatively, 64.1% of Suncor Energy shares are owned by institutional investors. 0.9% of Tesoro Corporation shares are owned by company insiders. Comparatively, 1.0% of Suncor Energy 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 Tesoro Corporation and Suncor Energy ‘s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tesoro Corporation N/A N/A N/A $2.81 36.15
Suncor Energy $23.90 billion 2.27 $7.27 billion $1.22 26.81

Suncor Energy has higher revenue and earnings than Tesoro Corporation. Suncor Energy is trading at a lower price-to-earnings ratio than Tesoro Corporation, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Tesoro Corporation and Suncor Energy , as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tesoro Corporation 0 3 14 0 2.82
Suncor Energy 0 3 13 1 2.88

Tesoro Corporation presently has a consensus target price of $109.13, suggesting a potential upside of 7.45%. Suncor Energy has a consensus target price of $43.75, suggesting a potential upside of 33.76%. Given Suncor Energy ‘s stronger consensus rating and higher probable upside, analysts clearly believe Suncor Energy is more favorable than Tesoro Corporation.

Dividends

Tesoro Corporation pays an annual dividend of $2.36 per share and has a dividend yield of 2.3%. Suncor Energy pays an annual dividend of $1.03 per share and has a dividend yield of 3.1%. Tesoro Corporation pays out 84.0% 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 84.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Suncor Energy beats Tesoro Corporation on 9 of the 15 factors compared between the two stocks.

Tesoro Corporation Company Profile

Andeavor, formerly Tesoro Corporation, is an independent petroleum refining, logistics and marketing company. he Company operates through three segments. The Refining operating segment refines crude oil and other feedstocks into transportation fuels, such as gasoline and gasoline blendstocks, jet fuel and diesel fuel, as well as other products, including heavy fuel oils, liquefied petroleum gas and petroleum coke for sale in bulk markets to a range of customers within its markets. The TLLP segment comprises Tesoro Logistics LP’s (TLLP) assets and operations, and includes certain crude oil and natural gas gathering assets, natural gas and natural gas liquids (NGLs) processing assets, and crude oil and refined products terminaling, and transportation. The marketing segment sells transportation fuels through branded and unbranded channels.

Suncor Energy Company Profile

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.

Receive News & Ratings for Tesoro Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Tesoro Corporation and related companies with MarketBeat.com's FREE daily email newsletter.