Sasol (NYSE:SSL) and CNX Resources (NYSE:CNX) are both mid-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.
Analyst Ratings
This is a summary of current ratings and recommmendations for Sasol and CNX Resources, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Sasol | 1 | 1 | 1 | 0 | 2.00 |
| CNX Resources | 0 | 6 | 8 | 0 | 2.57 |
Sasol currently has a consensus target price of $13.50, suggesting a potential downside of 6.77%. CNX Resources has a consensus target price of $14.6923, suggesting a potential upside of 6.31%. Given CNX Resources' stronger consensus rating and higher probable upside, analysts plainly believe CNX Resources is more favorable than Sasol.
Profitability
This table compares Sasol and CNX Resources' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Sasol | N/A | N/A | N/A |
| CNX Resources | -83.40% | 1.94% | 1.05% |
Institutional & Insider Ownership
1.7% of Sasol shares are held by institutional investors. Comparatively, 89.0% of CNX Resources shares are held by institutional investors. 1.0% of Sasol shares are held by insiders. Comparatively, 3.0% of CNX Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Risk and Volatility
Sasol has a beta of 3.66, meaning that its share price is 266% more volatile than the S&P 500. Comparatively, CNX Resources has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500.
Earnings & Valuation
This table compares Sasol and CNX Resources' revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Sasol | $10.61 billion | 0.86 | $-5,867,420,000.00 | $0.82 | 17.66 |
| CNX Resources | $1.92 billion | 1.58 | $-80,730,000.00 | $0.26 | 53.15 |
CNX Resources has lower revenue, but higher earnings than Sasol. Sasol is trading at a lower price-to-earnings ratio than CNX Resources, indicating that it is currently the more affordable of the two stocks.
Summary
CNX Resources beats Sasol on 9 of the 14 factors compared between the two stocks.
