BP vs. CVX, COP, EQNR, MPC, PSX, VLO, SU, HES, YPF, and PBF
Should you be buying BP stock or one of its competitors? The main competitors of BP include Chevron (CVX), ConocoPhillips (COP), Equinor ASA (EQNR), Marathon Petroleum (MPC), Phillips 66 (PSX), Valero Energy (VLO), Suncor Energy (SU), Hess (HES), YPF Sociedad Anónima (YPF), and PBF Energy (PBF). These companies are all part of the "petroleum refining" industry.
BP (NYSE:BP) and Chevron (NYSE:CVX) are both large-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their community ranking, earnings, institutional ownership, risk, analyst recommendations, media sentiment, profitability, valuation and dividends.
BP presently has a consensus price target of $43.88, suggesting a potential upside of 16.77%. Chevron has a consensus price target of $186.95, suggesting a potential upside of 15.11%. Given BP's higher probable upside, analysts clearly believe BP is more favorable than Chevron.
BP pays an annual dividend of $1.72 per share and has a dividend yield of 4.6%. Chevron pays an annual dividend of $6.52 per share and has a dividend yield of 4.0%. BP pays out 53.9% of its earnings in the form of a dividend. Chevron pays out 60.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. BP is clearly the better dividend stock, given its higher yield and lower payout ratio.
Chevron has lower revenue, but higher earnings than BP. BP is trading at a lower price-to-earnings ratio than Chevron, indicating that it is currently the more affordable of the two stocks.
BP has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, Chevron has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.
Chevron has a net margin of 10.21% compared to BP's net margin of 4.51%. Chevron's return on equity of 14.40% beat BP's return on equity.
Chevron received 13 more outperform votes than BP when rated by MarketBeat users. Likewise, 68.03% of users gave Chevron an outperform vote while only 67.95% of users gave BP an outperform vote.
In the previous week, Chevron had 16 more articles in the media than BP. MarketBeat recorded 40 mentions for Chevron and 24 mentions for BP. Chevron's average media sentiment score of 0.64 beat BP's score of 0.60 indicating that Chevron is being referred to more favorably in the news media.
11.0% of BP shares are owned by institutional investors. Comparatively, 72.4% of Chevron shares are owned by institutional investors. 1.0% of BP shares are owned by insiders. Comparatively, 0.2% of Chevron shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
Chevron beats BP on 15 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding BP and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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