Analyzing Statoil ASA (STO) and The Competition

Statoil ASA (NYSE: STO) is one of 23 public companies in the “Integrated Oil & Gas” industry, but how does it compare to its competitors? We will compare Statoil ASA to similar companies based on the strength of its analyst recommendations, earnings, profitability, dividends, institutional ownership, valuation and risk.

Profitability

This table compares Statoil ASA and its competitors’ 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%
Statoil ASA Competitors -6.21% 2.48% 1.19%

Analyst Recommendations

This is a summary of recent ratings and target prices for Statoil ASA and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Statoil ASA 3 9 2 0 1.93
Statoil ASA Competitors 216 653 772 31 2.37

Statoil ASA presently has a consensus price target of $17.67, indicating a potential downside of 13.01%. As a group, “Integrated Oil & Gas” companies have a potential upside of 37.94%. Given Statoil ASA’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Statoil ASA has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

5.0% of Statoil ASA shares are owned by institutional investors. Comparatively, 40.0% of shares of all “Integrated Oil & Gas” companies are owned by institutional investors. 9.8% of shares of all “Integrated Oil & Gas” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Statoil ASA and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Statoil ASA $55.12 billion $18.51 billion -81.24
Statoil ASA Competitors $52.06 billion $11.04 billion -13.49

Statoil ASA has higher revenue and earnings than its competitors. Statoil ASA is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Statoil ASA has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Statoil ASA’s competitors have a beta of 1.39, indicating that their average share price is 39% more volatile than the S&P 500.

Dividends

Statoil ASA pays an annual dividend of $0.70 per share and has a dividend yield of 3.4%. Statoil ASA pays out -280.0% of its earnings in the form of a dividend. As a group, “Integrated Oil & Gas” companies pay a dividend yield of 2.9% and pay out 175.9% of their earnings in the form of a dividend. Statoil ASA has increased its dividend for 4 consecutive years. Statoil ASA is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Summary

Statoil ASA beats its competitors on 8 of the 15 factors compared.

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.

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