Statoil ASA (STO) versus Cenovus Energy (CVE) Head-To-Head Survey

Statoil ASA (NYSE: STO) and Cenovus Energy (NYSE:CVE) are both large-cap energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, earnings, profitability, risk and dividends.

Valuation and Earnings

This table compares Statoil ASA and Cenovus Energy’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Statoil ASA $45.87 billion 1.68 -$2.92 billion ($0.24) -96.63
Cenovus Energy $9.09 billion 1.38 -$411.58 million $1.98 5.17

Cenovus Energy has lower revenue, but higher earnings than Statoil ASA. Statoil ASA is trading at a lower price-to-earnings ratio than Cenovus Energy, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Statoil ASA has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Cenovus Energy has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Statoil ASA and Cenovus Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Statoil ASA 3 10 1 0 1.86
Cenovus Energy 2 5 7 0 2.36

Statoil ASA presently has a consensus price target of $18.33, indicating a potential downside of 20.94%. Cenovus Energy has a consensus price target of $15.10, indicating a potential upside of 47.46%. Given Cenovus Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Cenovus Energy is more favorable than Statoil ASA.

Profitability

This table compares Statoil ASA and Cenovus Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Statoil ASA -1.37% 8.61% 2.93%
Cenovus Energy 17.45% 6.19% 2.81%

Insider & Institutional Ownership

5.1% of Statoil ASA shares are held by institutional investors. Comparatively, 56.8% of Cenovus Energy shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Statoil ASA pays an annual dividend of $0.54 per share and has a dividend yield of 2.3%. Cenovus Energy pays an annual dividend of $0.16 per share and has a dividend yield of 1.6%. Statoil ASA pays out -225.0% of its earnings in the form of a dividend. Cenovus Energy pays out 8.1% 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. Statoil ASA has raised its dividend for 5 consecutive years. Statoil ASA is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Statoil ASA Company Profile

Statoil ASA (Statoil) is an energy company. The Company is engaged in oil and gas exploration and production activities. The Company’s segments include Development and Production Norway (DPN), Development and Production International (DPI), Marketing, Midstream and Processing (MMP) and Other. DPN segment manages the Company’s upstream activities on the Norwegian continental shelf (NCS) and explores for and extracts crude oil, natural gas and natural gas liquids. DPI segment manages the Company’s upstream activities that are not included in the DPN and Development and Production USA (DPUSA) business areas. MMP segment manages its marketing and trading activities related to oil products and natural gas, transportation, processing and manufacturing, and the development of oil and gas. Other segment includes activities in New Energy Solutions (NES), Technology, Projects and Drilling (TPD), Global Strategy and Business Development (GSB), and Corporate staffs and support functions.

Cenovus Energy Company Profile

Cenovus Energy Inc is a Canada-based integrated oil company. It operates in the business of developing, producing and marketing crude oil, Natural Gas Liquids (NGLs) and natural gas in Canada. The Company also conducts marketing activities and owns refining interests in the United States (U.S.). Its segments include: Oil Sands, which includes the development and production of bitumen and natural gas in northeast Alberta; Conventional, which includes the development and production of conventional crude oil, NGLs and natural gas in Alberta and Saskatchewan, including the heavy oil assets at Pelican Lake, the carbon dioxide (CO2) enhanced oil recovery (EOR) project at Weyburn and emerging tight oil opportunities; Refining and Marketing, which includes transporting and selling crude oil and natural gas and joint ownership of refineries in the U.S., as well as Corporate and Eliminations.

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