ConocoPhillips (NYSE:COP) and Vertex Energy (NASDAQ:VTNR) are both oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.
Profitability
This table compares ConocoPhillips and Vertex Energy's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| ConocoPhillips | -5.66% | -0.02% | -0.01% |
| Vertex Energy | -5.96% | -38.49% | -6.68% |
Valuation and Earnings
This table compares ConocoPhillips and Vertex Energy's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| ConocoPhillips | $36.67 billion | 1.89 | $7.19 billion | $3.59 | 14.27 |
| Vertex Energy | $163.37 million | 0.47 | $-7,330,000.00 | ($0.08) | -19.38 |
ConocoPhillips has higher revenue and earnings than Vertex Energy. Vertex Energy is trading at a lower price-to-earnings ratio than ConocoPhillips, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
ConocoPhillips has a beta of 1.85, indicating that its share price is 85% more volatile than the S&P 500. Comparatively, Vertex Energy has a beta of 2.05, indicating that its share price is 105% more volatile than the S&P 500.
Insider and Institutional Ownership
72.9% of ConocoPhillips shares are owned by institutional investors. Comparatively, 14.7% of Vertex Energy shares are owned by institutional investors. 0.7% of ConocoPhillips shares are owned by insiders. Comparatively, 21.3% of Vertex Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings and price targets for ConocoPhillips and Vertex Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| ConocoPhillips | 0 | 3 | 18 | 0 | 2.86 |
| Vertex Energy | 0 | 1 | 1 | 0 | 2.50 |
ConocoPhillips presently has a consensus price target of $54.2609, suggesting a potential upside of 5.92%. Vertex Energy has a consensus price target of $2.75, suggesting a potential upside of 77.42%. Given Vertex Energy's higher possible upside, analysts clearly believe Vertex Energy is more favorable than ConocoPhillips.
Summary
ConocoPhillips beats Vertex Energy on 10 of the 14 factors compared between the two stocks.
