Repsol (OTCMKTS: REPYY) and ConocoPhillips (NYSE:COP) are both large-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitability and institutional ownership.
Volatility and Risk
Repsol has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, ConocoPhillips has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.
0.3% of Repsol shares are owned by institutional investors. Comparatively, 71.2% of ConocoPhillips shares are owned by institutional investors. 1.0% of Repsol shares are owned by insiders. Comparatively, 0.9% of ConocoPhillips shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Repsol and ConocoPhillips’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Repsol||$38.24 billion||0.77||$1.59 billion||$1.42||13.52|
|ConocoPhillips||$32.58 billion||2.34||-$855.00 million||$0.60||108.17|
Repsol has higher revenue and earnings than ConocoPhillips. Repsol is trading at a lower price-to-earnings ratio than ConocoPhillips, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and target prices for Repsol and ConocoPhillips, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Repsol presently has a consensus price target of $19.00, suggesting a potential downside of 1.04%. ConocoPhillips has a consensus price target of $60.38, suggesting a potential downside of 6.96%. Given Repsol’s higher possible upside, analysts plainly believe Repsol is more favorable than ConocoPhillips.
This table compares Repsol and ConocoPhillips’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Repsol pays an annual dividend of $0.75 per share and has a dividend yield of 3.9%. ConocoPhillips pays an annual dividend of $1.14 per share and has a dividend yield of 1.8%. Repsol pays out 52.8% of its earnings in the form of a dividend. ConocoPhillips pays out 190.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Repsol is clearly the better dividend stock, given its higher yield and lower payout ratio.
Repsol beats ConocoPhillips on 11 of the 16 factors compared between the two stocks.
Repsol Company Profile
Repsol, S.A. operates as an integrated energy company worldwide. Its Upstream segment engages in the exploration and development of crude oil and natural gas reserves. The company's Downstream segment in involved in refining and petro chemistry; trading and transportation of crude oil and oil products; commercialization of oil products, petrochemical, and LPG; and the commercialization, transport, and regasification of natural gas and liquefied natural gas (LNG). The company also distributes and markets asphalt products; installs, operates, and manages gas stations; provides maritime services; commercializes platform for customer management and marketing plans; constructs and operates oil refineries; refines and markets hydrocarbons; provides human resource services; distributes and supplies electricity; leases logistics assets; and develops new energy source projects, as well as produces and markets lubricants and biofuels. Further, it is involved in fuel marketing, research activities, regasification of LNG, marketing of chemical products, trading and transport, insurance and reinsurance, and financing activities. The company was formerly known as Repsol YPF, S.A. and changed its name to Repsol, S.A. in May 2012. Repsol, S.A. was founded in 1927 and is headquartered in Madrid, Spain.
ConocoPhillips Company Profile
ConocoPhillips is an independent exploration and production company. The Company explores for, produces, transports and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG) and natural gas liquids. The Company operates through five segments: Alaska, Lower 48, Canada, Europe and North Africa, Asia Pacific and Middle East, and Other International. The Alaska segment explores for, produces, transports and markets crude oil, natural gas liquids, natural gas and LNG. The Lower 48 segment consists of operations located in the United States Lower 48 states and the Gulf of Mexico. Its Canadian operations consists of oil sands developments in the Athabasca Region of northeastern Alberta. The Europe and North Africa segment consists of operations and exploration activities in Norway, the United Kingdom and Libya. The Asia Pacific and Middle East segment has exploration and production operations in China, Indonesia, Malaysia and Australia.
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