Sasol (NYSE: SSL) and Suncor Energy (NYSE:SU) are both large-cap oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.
Sasol pays an annual dividend of $0.83 per share and has a dividend yield of 2.8%. Suncor Energy pays an annual dividend of $0.95 per share and has a dividend yield of 3.0%. Suncor Energy pays out 77.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Valuation and Earnings
This table compares Sasol and Suncor Energy ‘s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sasol||$13.07 billion||0.01||$3.46 billion||N/A||N/A|
|Suncor Energy||$24.16 billion||2.14||$7.35 billion||$1.22||25.59|
Suncor Energy has higher revenue and earnings than Sasol.
Insider & Institutional Ownership
2.3% of Sasol shares are owned by institutional investors. Comparatively, 65.6% of Suncor Energy shares are owned by institutional investors. 1.0% of Sasol shares are owned by insiders. Comparatively, 1.0% of Suncor Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Sasol and Suncor Energy ‘s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for Sasol and Suncor Energy , as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Suncor Energy has a consensus target price of $42.86, suggesting a potential upside of 37.27%. Given Suncor Energy ‘s stronger consensus rating and higher probable upside, analysts clearly believe Suncor Energy is more favorable than Sasol.
Volatility and Risk
Sasol has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Suncor Energy has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.
Suncor Energy beats Sasol on 12 of the 14 factors compared between the two stocks.
Sasol Company Profile
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.
Suncor Energy Company Profile
Suncor Energy Inc. (Suncor) is an 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. Suncor also conducts energy trading activities.
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