Head to Head Comparison: Suncor Energy (SU) and ConocoPhillips (COP)

Suncor Energy (NYSE: SU) and ConocoPhillips (NYSE:COP) are both large-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Risk & Volatility

Suncor Energy has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, ConocoPhillips has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.

Earnings and Valuation

This table compares Suncor Energy and ConocoPhillips’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Suncor Energy $25.34 billion 2.65 $3.44 billion $1.51 27.17
ConocoPhillips $32.58 billion 2.52 -$855.00 million $0.60 116.73

Suncor Energy has higher earnings, but lower revenue than ConocoPhillips. Suncor Energy is trading at a lower price-to-earnings ratio than ConocoPhillips, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

65.5% of Suncor Energy shares are held by institutional investors. Comparatively, 71.2% of ConocoPhillips shares are held by institutional investors. 1.0% of Suncor Energy shares are held by company insiders. Comparatively, 0.9% of ConocoPhillips shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Suncor Energy and ConocoPhillips’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Suncor Energy 11.85% 7.54% 3.84%
ConocoPhillips -1.64% 6.69% 2.76%

Dividends

Suncor Energy pays an annual dividend of $1.15 per share and has a dividend yield of 2.8%. ConocoPhillips pays an annual dividend of $1.14 per share and has a dividend yield of 1.6%. Suncor Energy pays out 76.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ConocoPhillips pays out 190.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Suncor Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings and target prices for Suncor Energy and ConocoPhillips, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Suncor Energy 0 1 13 0 2.93
ConocoPhillips 0 7 13 0 2.65

Suncor Energy currently has a consensus price target of $49.00, suggesting a potential upside of 19.42%. ConocoPhillips has a consensus price target of $62.88, suggesting a potential downside of 10.22%. Given Suncor Energy’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Suncor Energy is more favorable than ConocoPhillips.

Summary

Suncor Energy beats ConocoPhillips on 11 of the 15 factors compared between the two stocks.

About Suncor Energy

Suncor Energy Inc. operates as an integrated energy company. The company primarily focuses on developing petroleum resource basins in Canada's Athabasca oil sands; explores, acquires, develops, produces, and markets crude oil and natural gas in Canada and internationally; transports and refines crude oil; markets petroleum and petrochemical products primarily in Canada. It operates in Oil Sands; Exploration and Production; Refining and Marketing; and Corporate, Energy Trading and Eliminations segments. The Oil Sands segment recovers bitumen from mining and in situ operations, and upgrades it into refinery feedstock and diesel fuel, or blends the bitumen with diluent for direct sale to market. The Exploration and Production segment is involved in offshore operations off the east coast of Canada and in the North Sea; and operating onshore assets in North America, Libya, and Syria. The Refining and Marketing segment refines crude oil and intermediate feedstock into petroleum and petrochemical products; and markets refined petroleum products to retail, commercial, and industrial customers through its dealers and other retail stations. The Corporate, Energy Trading and Eliminations segment owns interest in four wind facilities in Ontario and Western Canada, including Adelaide, Chin Chute, Magrath, and Sunbridge. This segment also engages in marketing, supply, and trading crude oil, natural gas, power, and byproducts. The company was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in April 1997. Suncor Energy Inc. was founded in 1953 and is headquartered in Calgary, Canada.

About ConocoPhillips

ConocoPhillips explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids worldwide. Its portfolio includes North American tight oil and oil sands assets in Canada; conventional assets in North America, Europe, Asia, and Australia; various LNG developments; and an inventory of conventional and unconventional exploration prospects. The company was founded in 1917 and is headquartered in Houston, Texas.

Receive News & Ratings for Suncor Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Suncor Energy and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply