Sasol (NYSE: SSL) is one of 35 public companies in the “Oil & Gas Refining and Marketing” industry, but how does it compare to its peers? We will compare Sasol to similar businesses based on the strength of its dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and valuation.

Risk and Volatility

Sasol has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, Sasol’s peers have a beta of 1.32, indicating that their average stock price is 32% more volatile than the S&P 500.

Earnings and Valuation

This table compares Sasol and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Sasol $12.68 billion $1.50 billion 12.91
Sasol Competitors $40.29 billion $685.91 million 205.14

Sasol’s peers have higher revenue, but lower earnings than Sasol. Sasol is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Sasol and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sasol N/A N/A N/A
Sasol Competitors -1.91% 3.03% 1.54%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Sasol and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sasol 0 2 1 0 2.33
Sasol Competitors 394 1862 2457 117 2.48

As a group, “Oil & Gas Refining and Marketing” companies have a potential upside of 2.74%. Given Sasol’s peers stronger consensus rating and higher probable upside, analysts plainly believe Sasol has less favorable growth aspects than its peers.

Dividends

Sasol pays an annual dividend of $0.74 per share and has a dividend yield of 2.1%. Sasol pays out 27.7% of its earnings in the form of a dividend. As a group, “Oil & Gas Refining and Marketing” companies pay a dividend yield of 4.9% and pay out 335.4% of their earnings in the form of a dividend.

Insider and Institutional Ownership

2.0% of Sasol shares are owned by institutional investors. Comparatively, 48.0% of shares of all “Oil & Gas Refining and Marketing” companies are owned by institutional investors. 1.0% of Sasol shares are owned by insiders. Comparatively, 11.0% of shares of all “Oil & Gas Refining and Marketing” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Sasol peers beat Sasol on 12 of the 15 factors compared.

About Sasol

Sasol Limited is an international integrated chemicals and energy company. The Company develops and commercializes technologies, and builds and operates facilities to produce a range of product streams, including liquid fuels, chemicals and low-carbon electricity. The Company’s operating business units include Mining and, Exploration and Production International. Its Strategic Business Units are energy, base chemicals, performance chemicals and group functions. The Company’s regional operating hubs include Southern Africa Operations and International Operations. The Company operates approximately six coal mines that supply feedstock for its Secunda (Sasol Synfuels) and Sasolburg (Sasolburg Operations) complexes in South Africa. It offers market ready fuels and oils, such as bitumen; industrial heating fuels; naphtha and illuminating paraffin transport fuels; automotive lubricants; industrial lubricants; greases; cleansers and degreasers; automotive fuels, and burner fuels.

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