Suncor Energy (NYSE: SU) and Aegean Marine Petroleum Network (NYSE:ANW) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.

Risk & Volatility

Suncor Energy has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Aegean Marine Petroleum Network has a beta of 2.17, indicating that its stock price is 117% more volatile than the S&P 500.

Profitability

This table compares Suncor Energy and Aegean Marine Petroleum Network’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Suncor Energy 11.63% 5.68% 2.91%
Aegean Marine Petroleum Network 0.28% 4.26% 1.55%

Dividends

Suncor Energy pays an annual dividend of $1.03 per share and has a dividend yield of 3.0%. Aegean Marine Petroleum Network pays an annual dividend of $0.08 per share and has a dividend yield of 2.0%. Suncor Energy pays out 62.0% of its earnings in the form of a dividend. Aegean Marine Petroleum Network pays out 21.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a breakdown of recent ratings for Suncor Energy and Aegean Marine Petroleum Network, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Suncor Energy 0 4 11 1 2.81
Aegean Marine Petroleum Network 0 0 3 0 3.00

Suncor Energy presently has a consensus price target of $43.66, suggesting a potential upside of 25.60%. Aegean Marine Petroleum Network has a consensus price target of $7.00, suggesting a potential upside of 75.00%. Given Aegean Marine Petroleum Network’s stronger consensus rating and higher probable upside, analysts clearly believe Aegean Marine Petroleum Network is more favorable than Suncor Energy.

Institutional and Insider Ownership

65.6% of Suncor Energy shares are held by institutional investors. Comparatively, 62.8% of Aegean Marine Petroleum Network shares are held by institutional investors. 1.0% of Suncor Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Suncor Energy and Aegean Marine Petroleum Network’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Suncor Energy $20.20 billion 2.85 $327.75 million $1.66 20.94
Aegean Marine Petroleum Network $4.08 billion 0.04 $51.87 million $0.38 10.53

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

Summary

Suncor Energy beats Aegean Marine Petroleum Network on 13 of the 17 factors compared between the two stocks.

Suncor Energy Company Profile

Suncor Energy Inc is a Canada-based 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. The Company also conducts energy trading activities.

Aegean Marine Petroleum Network Company Profile

Aegean Marine Petroleum Network Inc. is an international marine fuel logistics company. The Company markets and physically supplies refined marine fuel and lubricants to vessels in port, at sea and on rivers. As a physical supplier, the Company procures marine fuel from refineries, oil producers and other sources, and resells and delivers these fuels from its bunkering vessels to a range of end users. The Company owns and operates a fleet of approximately 50 bunkering vessels. The Company operates over 10 land-based storage facilities. The Company operates a vessel as a floating storage facility with a cargo carrying capacity of approximately 19,900 deadweight tonnage (dwt). The Company provides fueling services to various types of ocean-going and various types of coastal vessels, such as oil tankers, container ships, drybulk carriers, cruise ships, reefers, liquefied natural gas (LNG)/liquefied petroleum gas (LPG) carriers, car carriers and ferries.

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