BKV (NYSE:BKV – Get Free Report) and Sunoco (NYSE:SUN – Get Free Report) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.
Risk and Volatility
BKV has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Sunoco has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.
Insider and Institutional Ownership
24.3% of Sunoco shares are owned by institutional investors. 2.5% of BKV shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for BKV and Sunoco, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BKV | 0 | 1 | 8 | 2 | 3.09 |
| Sunoco | 0 | 1 | 8 | 1 | 3.00 |
BKV currently has a consensus target price of $33.67, indicating a potential upside of 64.77%. Sunoco has a consensus target price of $79.75, indicating a potential upside of 8.55%. Given BKV’s stronger consensus rating and higher possible upside, analysts clearly believe BKV is more favorable than Sunoco.
Profitability
This table compares BKV and Sunoco’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BKV | 17.73% | 6.67% | 3.73% |
| Sunoco | 2.88% | 18.78% | 4.29% |
Earnings & Valuation
This table compares BKV and Sunoco”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BKV | $1.01 billion | 2.22 | $179.16 million | $2.74 | 7.46 |
| Sunoco | $39.58 billion | 0.38 | $527.00 million | $4.52 | 16.25 |
Sunoco has higher revenue and earnings than BKV. BKV is trading at a lower price-to-earnings ratio than Sunoco, indicating that it is currently the more affordable of the two stocks.
About BKV
BKV Corporation engages in the acquisition, operation, and development of natural gas and NGL properties. It is also involved in the gathering, processing, and transportation of natural gas. The company was founded in 2015 and is based in Denver, Colorado with additional offices in Tunkhannock, Pennsylvania and Fort Worth, Texas. BKV Corporation, LLC operates as a subsidiary of Banpu North America Corporation.
About Sunoco
Sunoco LP, together with its subsidiaries, distributes and retails motor fuels in the United States. It operates through two segments: Fuel Distribution and Marketing, and All Other. The Fuel Distribution and Marketing segment purchases motor fuel, as well as other petroleum products, such as propane and lubricating oil from independent refiners and oil companies and supplies it to company-operated retail stores, independently operated commission agents, and retail stores, as well as other commercial customers, including unbranded retail stores, other fuel distributors, school districts, municipalities, and other industrial customers. It owns and operates retail stores under the APlus and Aloha Island Mart brand names; and offers food, beverages, snacks, grocery and non-food merchandise, motor fuels, and other services. The All Other segment includes partnership credit card services, franchise royalties, and retail operations; and offers credit card processing, car washes, lottery, automated teller machines, money order, prepaid phone cards, and wireless services. The company was formerly known as Susser Petroleum Partners LP and changed its name to Sunoco LP in 2014. Sunoco LP was founded in 1886 and is headquartered in Dallas, Texas.
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