Sasol (NYSE:SSL) and Pioneer Natural Resources (NYSE:PXD) are both large-cap oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.
Profitability
This table compares Sasol and Pioneer Natural 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 |
Pioneer Natural Resources | 2.30% | 4.67% | 2.97% |
Institutional and Insider Ownership
1.7% of Sasol shares are held by institutional investors. Comparatively, 89.9% of Pioneer Natural Resources shares are held by institutional investors. 1.0% of Sasol shares are held by insiders. Comparatively, 0.9% of Pioneer Natural Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Sasol and Pioneer Natural Resources, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Sasol | 1 | 1 | 2 | 0 | 2.25 |
Pioneer Natural Resources | 0 | 5 | 22 | 1 | 2.86 |
Sasol presently has a consensus target price of $13.50, indicating a potential downside of 20.45%. Pioneer Natural Resources has a consensus target price of $172.2593, indicating a potential upside of 17.93%. Given Pioneer Natural Resources' stronger consensus rating and higher probable upside, analysts plainly believe Pioneer Natural Resources is more favorable than Sasol.
Valuation and Earnings
This table compares Sasol and Pioneer Natural Resources' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Sasol | $10.61 billion | 1.01 | $-5,867,420,000.00 | $0.82 | 20.70 |
Pioneer Natural Resources | $9.30 billion | 3.40 | $756 million | $8.18 | 17.86 |
Pioneer Natural Resources has lower revenue, but higher earnings than Sasol. Pioneer Natural Resources is trading at a lower price-to-earnings ratio than Sasol, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Sasol has a beta of 3.66, suggesting that its stock price is 266% more volatile than the S&P 500. Comparatively, Pioneer Natural Resources has a beta of 1.92, suggesting that its stock price is 92% more volatile than the S&P 500.
Summary
Pioneer Natural Resources beats Sasol on 12 of the 15 factors compared between the two stocks.