Analyzing Cenovus Energy (CVE) & Total SA (TOT)

Cenovus Energy (NYSE: CVE) and Total SA (NYSE:TOT) are both large-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Institutional and Insider Ownership

54.8% of Cenovus Energy shares are owned by institutional investors. Comparatively, 5.3% of Total SA shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Cenovus Energy pays an annual dividend of $0.16 per share and has a dividend yield of 1.5%. Total SA pays an annual dividend of $1.68 per share and has a dividend yield of 3.0%. Cenovus Energy pays out 8.1% of its earnings in the form of a dividend. Total SA pays out 53.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Volatility and Risk

Cenovus Energy has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Total SA has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.

Valuation & Earnings

This table compares Cenovus Energy and Total SA’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Cenovus Energy $9.09 billion 1.44 -$411.58 million $1.98 5.38
Total SA $149.74 billion 0.94 $6.20 billion $3.17 17.77

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

Profitability

This table compares Cenovus Energy and Total SA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cenovus Energy 17.45% 6.88% 3.12%
Total SA 4.90% 9.39% 4.34%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Cenovus Energy and Total SA, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cenovus Energy 2 3 8 0 2.46
Total SA 0 9 5 1 2.47

Cenovus Energy currently has a consensus price target of $16.79, indicating a potential upside of 57.46%. Total SA has a consensus price target of $55.40, indicating a potential downside of 1.65%. Given Cenovus Energy’s higher possible upside, research analysts clearly believe Cenovus Energy is more favorable than Total SA.

Summary

Total SA beats Cenovus Energy on 9 of the 16 factors compared between the two stocks.

Cenovus Energy Company Profile

Cenovus Energy Inc is a Canada-based integrated oil company. It operates in the business of developing, producing and marketing crude oil, Natural Gas Liquids (NGLs) and natural gas in Canada. The Company also conducts marketing activities and owns refining interests in the United States (U.S.). Its segments include: Oil Sands, which includes the development and production of bitumen and natural gas in northeast Alberta; Conventional, which includes the development and production of conventional crude oil, NGLs and natural gas in Alberta and Saskatchewan, including the heavy oil assets at Pelican Lake, the carbon dioxide (CO2) enhanced oil recovery (EOR) project at Weyburn and emerging tight oil opportunities; Refining and Marketing, which includes transporting and selling crude oil and natural gas and joint ownership of refineries in the U.S., as well as Corporate and Eliminations.

Total SA Company Profile

Total S.A. (Total) is an oil and gas company. The Company has three segments: an Upstream segment, including the activities of the exploration and production of hydrocarbons, and the activities of gas and power; a Refining & Chemicals segment constituting an industrial hub consisting of the activities of refining, petrochemicals and specialty chemicals, and also includes the activities of oil trading and shipping, and a Marketing & Services segment, including the activities of supply and marketing in the field of petroleum products, as well as the activity of New Energies. Its Corporate segment includes holdings operating and financial activities. The Company operates in the renewable energies and power generation sectors. It is engaged in various sectors of oil and gas industry, including upstream (hydrocarbon exploration, development and production) and downstream (refining, petrochemicals, specialty chemicals, trading and shipping of crude oil and petroleum products and marketing).

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