YPF (NYSE:YPF) and BP (NYSE:BP) are both 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
YPF has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, BP has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.
24.8% of YPF shares are owned by institutional investors. Comparatively, 11.1% of BP shares are owned by institutional investors. 1.0% of BP 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.
Earnings & Valuation
This table compares YPF and BP’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|YPF||$15.27 billion||0.39||$745.33 million||$1.90||7.87|
|BP||$244.58 billion||0.55||$3.39 billion||$1.88||21.35|
BP has higher revenue and earnings than YPF. YPF is trading at a lower price-to-earnings ratio than BP, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and target prices for YPF and BP, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
YPF presently has a consensus price target of $25.94, suggesting a potential upside of 73.37%. BP has a consensus price target of $53.85, suggesting a potential upside of 34.19%. Given YPF’s higher possible upside, analysts plainly believe YPF is more favorable than BP.
This table compares YPF and BP’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
YPF pays an annual dividend of $0.08 per share and has a dividend yield of 0.5%. BP pays an annual dividend of $2.44 per share and has a dividend yield of 6.1%. YPF pays out 4.2% of its earnings in the form of a dividend. BP pays out 129.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. YPF has raised its dividend for 3 consecutive years.
YPF Sociedad Anonima, an energy company, operates in the oil and gas upstream and downstream activities in Argentina. The company involved in the exploration, development, and production of crude oil, natural gas, and liquefied petroleum gas (LPG). It is also engages in the refining, marketing, transportation, and distribution of oil, petroleum products, petroleum derivatives, petrochemicals, LPG, and bio-fuels, as well as in gas separation and natural gas distribution operations. As of December 31, 2017, it had interests in approximately 112 oil and gas fields; proved reserves of approximately 480 million barrels (mmbbl) of oil; and approximately 2,520 billion cubic feet of gas. The company also had a retail distribution network of 1,563 YPF-branded service stations; 21 exploration permits, including 18 onshore and 3 offshore exploration permits, as well as 112 production concessions; and 36 crude oil treatment plants and 10 pumping plants. In addition, it owns three refineries with annual refining capacity of approximately 116 mmbbl; approximately 2,700 kilometers of crude oil pipelines with approximately 640,000 barrels of aggregate daily transportation capacity of refined products; and crude oil tankage of approximately 7 mmbbl, as well as maintains terminal facilities at 5 Argentine ports. Further, the company participates in 3 power generation plants with an aggregate installed capacity of 1,367 megawatts; offers diesel, fertilizers, lubricants, phytosanitaries, ensiling bags, and other products; and supplies fuels, lubricants, coal, asphalts, and paraffin and derivatives. YPF Sociedad Anonima was founded in 1977 and is headquartered in Buenos Aires, Argentina.
BP p.l.c. engages in energy business worldwide. It operates through three segments: Upstream, Downstream, and Rosneft. The Upstream segment is involved in the oil and natural gas exploration, field development, and production; midstream transportation, storage, and processing; and marketing and trading of liquefied natural gas (LNG), biogas, power and natural gas liquids (NGLs). This segment also engages in the ownership and management of crude oil and natural gas pipelines; processing facilities and export terminals; and LNG processing facilities and transportation, as well as in NGLs processing business. The Downstream segment refines, manufactures, markets, transports, supplies, and trades in crude oil, petroleum, and petrochemical products and related services to wholesale and retail customers. It offers gasoline, diesel, and aviation fuel; lubricants, and related products and services to the automotive, industrial, marine, and energy markets under the Castrol, BP, and Aral brands; and petrochemical products, such as purified terephthalic acid, paraxylene, acetic acid, olefins and derivatives, and specialty petrochemical products. The Rosneft segment engages in the exploration and production of hydrocarbons, as well as jet fuel, bunkering, bitumen, and lubricants activities. This segment also owns and operates 13 refineries in Russia; and approximately 2,960 retail service stations in Russia and internationally. The company also produces ethanol, bio-isobutanol, bio-power, and solar energy; transports hydrocarbon products through time-chartered and spot-chartered vessels; and holds interests in 14 onshore wind sites with a generation capacity of 1,432 megawatts through wind. BP p.l.c. was founded in 1889 and is headquartered in London, the United Kingdom.
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