Reviewing Suncor Energy (NYSE:SU) & Gibson Energy (OTCMKTS:GBNXF)

Gibson Energy (OTCMKTS:GBNXF) and Suncor Energy (NYSE:SU) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Valuation and Earnings

This table compares Gibson Energy and Suncor Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gibson Energy	$8.60 billion	0.33	$111.06 million	$0.71	24.59
Suncor Energy	$37.32 billion	1.28	$4.39 billion	$3.47	11.24

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

Dividends

Gibson Energy pays an annual dividend of $1.20 per share and has a dividend yield of 6.9%. Suncor Energy pays an annual dividend of $1.66 per share and has a dividend yield of 4.3%. Gibson Energy pays out 169.0% 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 pays out 47.8% of its earnings in the form of a dividend. Suncor Energy has increased its dividend for 4 consecutive years.

Volatility & Risk

Gibson Energy has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Suncor Energy has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gibson Energy	1.44%	16.96%	3.31%
Suncor Energy	11.95%	14.90%	7.40%

Institutional and Insider Ownership

0.2% of Gibson Energy shares are held by institutional investors. Comparatively, 67.4% of Suncor Energy shares are held by institutional investors. 1.0% of Suncor Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Gibson Energy and Suncor Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gibson Energy	0	3	1	1	2.60
Suncor Energy	0	3	6	2	2.91

Suncor Energy has a consensus price target of $64.67, suggesting a potential upside of 65.84%. Given Suncor Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Suncor Energy is more favorable than Gibson Energy.

Summary

Suncor Energy beats Gibson Energy on 14 of the 18 factors compared between the two stocks.

About Gibson Energy

Gibson Energy Inc., together with its subsidiaries, engages in the gathering, storage, optimization, processing, and marketing of liquids and refined products in Canada and the United States. It operates through Infrastructure and Marketing segments. The Infrastructure segment operates a network of liquid infrastructure assets that include oil terminals, rail loading and unloading facilities, gathering pipelines, a crude oil processing facility, and other terminals. The Marketing segment purchases, sells, stores, and optimizes hydrocarbon products, including crude oil, natural gas liquids, road asphalt, roofing flux, frac oils, light and heavy straight run distillates, vacuum gas oil, and an oil-based mud product. It serves producers, refiners, marketers, and integrated companies, as well as exploration and production companies. The company was formerly known as Gibson Energy Holdings ULC and changed its name to Gibson Energy Inc. in April 2011. Gibson Energy Inc. was founded in 1953 and is headquartered in Calgary, Canada.

About Suncor Energy

Suncor Energy Inc. operates as an integrated energy company in Canada, the United States, and internationally. It operates through Oil Sands; Exploration and Production; and Refining and Marketing segments. The Oil Sands segment explores, develops, and produces bitumen, synthetic crude oil, and related products. This segment also engages in oil sands mining. The Exploration and Production segment is involved in offshore operations in the East Coast of Canada; and marketing and risk management of crude oil and natural gas. The Refining and Marketing segment engages in the refining of crude oil products; and distribution, marketing, transportation, and risk management of refined and petrochemical products, and other purchased products through the retail and wholesale networks. This segment is also involved in the trading of crude oil, refined products, natural gas, and power. 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 1917 and is headquartered in Calgary, Canada. Suncor Energy Inc.