Financial Contrast: Ecopetrol (NYSE:EC) & Toro (NASDAQ:TORO)

Ecopetrol (NYSE:EC) and Toro (NASDAQ:TORO) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ecopetrol	$29.56 billion	1.11	$2.10 billion	$1.89	8.42
Toro	$21.08 million	4.19	$5.93 million	($0.11)	-37.40

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

Institutional & Insider Ownership

1.7% of Toro shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ecopetrol	11.46%	14.50%	5.42%
Toro	16.42%	2.04%	1.17%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ecopetrol	1	7	0	1	2.11
Toro	0	1	0	0	2.00

Ecopetrol currently has a consensus target price of $15.95, suggesting a potential upside of 0.19%. Given Ecopetrol’s stronger consensus rating and higher possible upside, analysts clearly believe Ecopetrol is more favorable than Toro.

Volatility and Risk

Ecopetrol has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500. Comparatively, Toro has a beta of 2.57, indicating that its share price is 157% more volatile than the S&P 500.

Summary

Ecopetrol beats Toro on 9 of the 13 factors compared between the two stocks.

About Ecopetrol

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 Toro

Toro Corp., a shipping company, acquires, owns, charters, and operates oceangoing tanker vessels and provides seaborne transportation services for crude oil LPG, and refined petroleum products worldwide. The company operates in three segments: Aframax/LR2 Tanker, Handysize Tanker, and LPG Carrier. As of December 31, 2023, it operated a fleet of one Handysize tanker vessel; one Aframax/LR2 vessel; and four LPG carrier vessels with an aggregate cargo carrying capacity of 0.1 million deadweight ton. Toro Corp. was incorporated in 2022 and is based in Limassol, Cyprus.