Analyzing Repsol (OTCMKTS:REPYY) & Ecopetrol (NYSE:EC)

Ecopetrol (NYSE:ECGet Free Report) and Repsol (OTCMKTS:REPYYGet Free Report) are both large-cap energy companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Insider and Institutional Ownership

0.3% of Repsol shares are held by institutional investors. 1.0% of Repsol shares are held by company 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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Ecopetrol and Repsol, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ecopetrol 1 3 1 0 2.00
Repsol 1 5 2 1 2.33

Ecopetrol currently has a consensus target price of $10.73, indicating a potential upside of 7.82%. Given Ecopetrol’s higher possible upside, research analysts plainly believe Ecopetrol is more favorable than Repsol.

Risk and Volatility

Ecopetrol has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, Repsol has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.

Dividends

Ecopetrol pays an annual dividend of $1.51 per share and has a dividend yield of 15.2%. Repsol pays an annual dividend of $0.92 per share and has a dividend yield of 4.9%. Ecopetrol pays out 115.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Repsol pays out 86.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares Ecopetrol and Repsol”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ecopetrol $125,669.43 billion 0.00 $15.23 billion $1.31 7.60
Repsol $61.38 billion 0.36 $1.90 billion $1.07 17.61

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

Profitability

This table compares Ecopetrol and Repsol’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ecopetrol 8.75% 5.15% 1.82%
Repsol 1.33% 9.06% 4.17%

Summary

Repsol beats Ecopetrol on 10 of the 17 factors compared between the two stocks.

About Ecopetrol

(Get Free Report)

Ecopetrol S.A. operates as an integrated energy company. The company operates through four segments: Exploration and Production; Transport and Logistics; Refining, Petrochemical and Biofuels; and Electric Power Transmission and Toll Roads Concessions. It engages in the exploration and production of oil and gas; transportation of crude oil, motor fuels, fuel oil, and other refined products, including diesel, jet, and biofuels; processing and refining crude oil; distribution of natural gas and LPG; sale of refined and petrochemical products; supplying of electric power transmission services; design, development, construction, operation, and maintenance of road and energy infrastructure projects; and supplying of information technology and telecommunications services. As of December 31, 2022, the company had approximately 9,127 kilometers of crude oil and multi-purpose pipelines. It also produces and commercializes polypropylene resins and compounds, and masterbatches; and offers industrial service sales to customers and specialized management services. It has operations in Colombia, the United States, Asia, Central America and the Caribbean, Europe, and South America. The company was formerly known as Empresa Colombiana de Petróleos and changed its name to Ecopetrol S.A. in June 2003. Ecopetrol S.A. was incorporated in 1948 and is headquartered in Bogotá, Colombia.

About Repsol

(Get Free Report)

Repsol, S.A. operates as a multi-e energy company worldwide. Its Upstream segment engages in the exploration, development, and production of crude oil and natural gas reserves, as well as develops low-carbon geological solutions. The company's Industrial segment is involved in refining activities and petrochemicals business; the trading, transport, and sale of crude oil, natural gas, and fuels; and development of hydrogen, biomethane, sustainable biofuels, and synthetic fuels. Its Customer segment is involved in mobility; and sale of fuel products, electricity and gas, lubricants, and other specialties. The company's Low-Carbon Generation segment engages in the low-emissions electricity generation and renewable sources. The company also offers asphalt products; installs, operates, and manages service stations; provides maritime services; constructs and operates oil refineries; explores and produces hydrocarbons; offers human resource; distributes and supplies electricity; and develops new energy projects, solar, and wind projects, as well as produces and sells chemical products and lubricants. In addition, it is involved in fuel and special products sale, research, trading and transport, insurance and reinsurance, safety, and financing activities; development of production processes, storage, transport, use, consumption, and transformation of hydrogen; decarbonization activities; and promotion, design, construction, and operation of molecular recycling facilities. Further, the company produces synthetic oil cloths; and invests in liquefaction plant project. The company was formerly known as Repsol YPF, S.A. and changed its name to Repsol, S.A. in May 2012. Repsol, S.A. was founded in 1927 and is headquartered in Madrid, Spain.

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