Comparing PetroChina Company Limited (PTR) & Statoil ASA (STO)

PetroChina Company Limited (NYSE: PTR) and Statoil ASA (NYSE:STO) are both large-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for PetroChina Company Limited and Statoil ASA, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PetroChina Company Limited 0 3 4 0 2.57
Statoil ASA 3 7 4 0 2.07

Statoil ASA has a consensus price target of $17.67, suggesting a potential downside of 6.82%. Given Statoil ASA’s higher possible upside, analysts plainly believe Statoil ASA is more favorable than PetroChina Company Limited.

Dividends

PetroChina Company Limited pays an annual dividend of $1.66 per share and has a dividend yield of 2.6%. Statoil ASA pays an annual dividend of $0.70 per share and has a dividend yield of 3.7%. PetroChina Company Limited pays out 103.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Statoil ASA pays out -291.7% of its earnings in the form of a dividend. Statoil ASA has raised its dividend for 4 consecutive years. Statoil ASA is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares PetroChina Company Limited and Statoil ASA’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
PetroChina Company Limited $277.56 billion 0.42 $43.82 billion $1.60 40.21
Statoil ASA $55.12 billion 1.11 $18.51 billion ($0.24) -79.00

PetroChina Company Limited has higher revenue and earnings than Statoil ASA. Statoil ASA is trading at a lower price-to-earnings ratio than PetroChina Company Limited, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

PetroChina Company Limited has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Statoil ASA has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Profitability

This table compares PetroChina Company Limited and Statoil ASA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PetroChina Company Limited 1.08% 1.78% 1.02%
Statoil ASA -1.32% 5.61% 1.93%

Institutional & Insider Ownership

0.2% of PetroChina Company Limited shares are owned by institutional investors. Comparatively, 5.0% of Statoil ASA shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Statoil ASA beats PetroChina Company Limited on 8 of the 15 factors compared between the two stocks.

About PetroChina Company Limited

PetroChina Company Limited is a China-based company principally engaged in the production and distribution of oil and gas. The Company mainly operates through four business segments. The Exploration and Production segment is principally engaged in the exploration, development, production and sales of crude oil and natural gas. The Refining and Chemical Products segment is principally engaged in the refining of crude oil and petroleum products, as well as the production and sales of basic petrochemical products, derivative petrochemical products and other chemical products. The Sales segment is principally engaged in the sales of refined petroleum products. The Natural Gas and Pipeline segment is engaged in the transportation and sales of natural gas, crude oil and refined petroleum products.

About Statoil ASA

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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