Statoil ASA (STO) and The Competition Critical Analysis

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 related companies based on the strength of its institutional ownership, profitability, dividends, valuation, analyst recommendations, earnings and risk.

Risk and Volatility

Statoil ASA has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Statoil ASA’s competitors have a beta of 1.40, indicating that their average stock price is 40% more volatile than the S&P 500.

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% 2.47% 1.19%

Valuation and Earnings

This table compares Statoil ASA and its competitors gross 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.

Analyst Recommendations

This is a summary of recent ratings and price targets 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 216 657 773 31 2.37

Statoil ASA currently has a consensus target price of $18.33, indicating a potential downside of 9.73%. 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 held by institutional investors. Comparatively, 40.0% of shares of all “Integrated Oil & Gas” companies are held by institutional investors. 9.8% of shares of all “Integrated Oil & Gas” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

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 2.6% and pay out 158.1% 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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