Contrasting Total (TOT) & Newfield Exploration (NFX)

Total (NYSE:TOT) and Newfield Exploration (NYSE:NFX) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Earnings & Valuation

This table compares Total and Newfield Exploration’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Total $171.49 billion 0.79 $8.63 billion $4.12 13.19
Newfield Exploration $1.77 billion 1.86 $427.00 million $2.15 7.65

Total has higher revenue and earnings than Newfield Exploration. Newfield Exploration is trading at a lower price-to-earnings ratio than Total, indicating that it is currently the more affordable of the two stocks.

Dividends

Total pays an annual dividend of $2.48 per share and has a dividend yield of 4.6%. Newfield Exploration does not pay a dividend. Total pays out 60.2% of its earnings in the form of a dividend.

Risk & Volatility

Total has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Newfield Exploration has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500.

Insider & Institutional Ownership

6.2% of Total shares are held by institutional investors. Comparatively, 97.7% of Newfield Exploration shares are held by institutional investors. 0.6% of Newfield Exploration shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Total and Newfield Exploration’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Total 5.55% 11.09% 5.22%
Newfield Exploration 21.14% 43.65% 13.21%

Analyst Ratings

This is a summary of recent ratings and target prices for Total and Newfield Exploration, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Total 0 5 11 1 2.76
Newfield Exploration 0 13 9 0 2.41

Total currently has a consensus target price of $53.80, indicating a potential downside of 0.98%. Newfield Exploration has a consensus target price of $35.94, indicating a potential upside of 118.64%. Given Newfield Exploration’s higher possible upside, analysts clearly believe Newfield Exploration is more favorable than Total.

Summary

Newfield Exploration beats Total on 9 of the 17 factors compared between the two stocks.

About Total

TOTAL S.A. operates as an integrated oil and gas company worldwide. The company operates through Exploration & Production; Gas, Renewables & Power; Refining & Chemicals; and Marketing & Services segments. The Exploration & Production segment engages in the exploration and production activities in approximately 50 countries, and produces oil or gas in approximately 30 countries. The Gas, Renewables & Power segment is involved in the production, liquefaction, and trading of natural gas; production and trading of electricity, liquefied natural gas(LNG), liquefied petroleum gas, and petcoke and sulfur; LNG regasification; and transportation and storage of natural gas. This segment also designs, manufactures and supplies photovoltaic cells and panels. The Refining & Chemicals segment refines petrochemicals, including olefins and aromatics; and polymer derivatives, such as polyethylene, polypropylene, polystyrene, and hydrocarbon resins, as well as engages in biomass conversion and elastomer processing. It is also involved in trading and shipping crude oil and petroleum products. The Marketing & Services segment supplies and markets petroleum products, including bulk fuel, aviation fuel, special fluids, LPG, bitumen, heavy fuels, and marine bunkers; produces and sells lubricants. It operates approximately 16,000 service stations. TOTAL S.A. also develops renewable energies with a focus on solar and biomass. As of December 31, 2016, the company had 11,475 Mboe of combined proved reserves of oil and gas. TOTAL S.A. was founded in 1924 and is headquartered in Courbevoie, France.

About Newfield Exploration

Newfield Exploration Company, an independent energy company, engages in the exploration, development, and production of crude oil, natural gas, and natural gas liquids in the United States. The company has operations principally in the Anadarko and Arkoma basins of Oklahoma, the Williston Basin of North Dakota, and the Uinta Basin of Utah. It also holds oil producing assets offshore China. The company was founded in 1988 and is headquartered in The Woodlands, Texas.

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