Statoil (STO) vs. Repsol (REPYY) Critical Survey

Statoil (OTCMKTS: REPYY) and Repsol (OTCMKTS:REPYY) are both large-cap oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Analyst Ratings

This is a breakdown of current ratings and target prices for Statoil and Repsol, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Statoil 3 10 2 0 1.93
Repsol 0 2 3 0 2.60

Statoil currently has a consensus price target of $21.50, indicating a potential downside of 20.78%. Repsol has a consensus price target of $19.00, indicating a potential upside of 2.65%. Given Repsol’s stronger consensus rating and higher possible upside, analysts clearly believe Repsol is more favorable than Statoil.

Volatility and Risk

Statoil has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Repsol has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.

Institutional & Insider Ownership

5.0% of Statoil shares are held by institutional investors. Comparatively, 0.3% of Repsol shares are held by institutional investors. 1.0% of Repsol shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Statoil and Repsol’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Statoil 7.34% 12.32% 4.36%
Repsol 4.87% 8.11% 4.04%

Valuation and Earnings

This table compares Statoil and Repsol’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Statoil $61.19 billion 1.47 $4.59 billion $1.38 19.67
Repsol $46.59 billion 0.61 $2.40 billion $1.75 10.58

Statoil has higher revenue and earnings than Repsol. Repsol is trading at a lower price-to-earnings ratio than Statoil, indicating that it is currently the more affordable of the two stocks.

Dividends

Statoil pays an annual dividend of $0.32 per share and has a dividend yield of 1.2%. Repsol pays an annual dividend of $0.92 per share and has a dividend yield of 5.0%. Statoil pays out 23.2% of its earnings in the form of a dividend. Repsol pays out 52.6% 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. Statoil has raised its dividend for 5 consecutive years.

Summary

Statoil beats Repsol on 10 of the 17 factors compared between the two stocks.

Statoil Company Profile

Statoil ASA, an energy company, explores for, produces, transports, refines, and markets petroleum and petroleum-derived products, and other forms of energy in Norway and internationally. The company operates through Development & Production Norway; Development & Production USA; Development & Production International; Marketing, Midstream & Processing; New Energy Solutions; Technology, Projects & Drilling; Exploration; and Global Strategy & Business Development segments. It also transports, processes, manufactures, markets, and trades oil and gas commodities, such as crude, condensate, gas liquids, products, natural gas, and liquefied natural gas; markets and trades electricity and emission rights; and operates refineries, processing and power plants, and terminals. In addition, the company develops wind, and carbon capture and storage projects, as well as offers other renewable energy and low-carbon energy solutions. As of December 31, 2017, it had proved oil and gas reserves of 5,367 million barrels of oil equivalent. The company was formerly known as StatoilHydro ASA and changed its name to Statoil ASA in November 2009. Statoil ASA was founded in 1972 and is headquartered in Stavanger, Norway.

Repsol Company Profile

Repsol, S.A. operates as an integrated energy company worldwide. Its Upstream segment engages in the exploration and development of crude oil and natural gas reserves. The company's Downstream segment in involved in refining and petro chemistry; trading and transportation of crude oil and oil products; commercialization of oil products, petrochemical, and LPG; and the commercialization, transport, and regasification of natural gas and liquefied natural gas (LNG). The company also distributes and markets asphalt products; installs, operates, and manages gas stations; provides maritime services; commercializes platform for customer management and marketing plans; constructs and operates oil refineries; refines and markets hydrocarbons; provides human resource services; distributes and supplies electricity; leases logistics assets; and develops new energy source projects, as well as produces and markets lubricants and biofuels. Further, it is involved in fuel marketing, research activities, regasification of LNG, marketing of chemical products, trading and transport, insurance and reinsurance, and financing activities. The company was formerly known as Repsol YPF, S.A. and changed its name to Repsol, S.A. in May 2012. Repsol, S.A. was founded in 1927 and is headquartered in Madrid, Spain.

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