Sasol (NYSE: SSL) and Chevron (NYSE:CVX) are both large-cap oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.
Valuation and Earnings
This table compares Sasol and Chevron’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sasol||$12.68 billion||1.73||$1.50 billion||N/A||N/A|
|Chevron||$141.72 billion||1.54||$9.20 billion||$4.85||23.61|
Chevron has higher revenue and earnings than Sasol.
This is a summary of recent ratings and recommmendations for Sasol and Chevron, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Chevron has a consensus price target of $131.06, indicating a potential upside of 14.46%. Given Chevron’s higher possible upside, analysts clearly believe Chevron is more favorable than Sasol.
Volatility & Risk
Sasol has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Chevron has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.
Insider & Institutional Ownership
2.1% of Sasol shares are owned by institutional investors. Comparatively, 65.0% of Chevron shares are owned by institutional investors. 1.0% of Sasol shares are owned by company insiders. Comparatively, 0.4% of Chevron shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Sasol pays an annual dividend of $0.64 per share and has a dividend yield of 1.9%. Chevron pays an annual dividend of $4.48 per share and has a dividend yield of 3.9%. Chevron pays out 92.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chevron has increased its dividend for 32 consecutive years. Chevron is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Sasol and Chevron’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Chevron beats Sasol on 11 of the 15 factors compared between the two stocks.
Sasol Company Profile
Sasol Limited is an international integrated chemicals and energy company. The Company develops and commercializes technologies, and builds and operates facilities to produce a range of product streams, including liquid fuels, chemicals and low-carbon electricity. The Company’s operating business units include Mining and, Exploration and Production International. Its Strategic Business Units are energy, base chemicals, performance chemicals and group functions. The Company’s regional operating hubs include Southern Africa Operations and International Operations. The Company operates approximately six coal mines that supply feedstock for its Secunda (Sasol Synfuels) and Sasolburg (Sasolburg Operations) complexes in South Africa. It offers market ready fuels and oils, such as bitumen; industrial heating fuels; naphtha and illuminating paraffin transport fuels; automotive lubricants; industrial lubricants; greases; cleansers and degreasers; automotive fuels, and burner fuels.
Chevron Company Profile
Chevron Corporation (Chevron) manages its investments in subsidiaries and affiliates, and provides administrative, financial, management and technology support to the United States and international subsidiaries that engage in integrated energy and chemicals operations. The Company operates through two business segments: Upstream and Downstream. Upstream operations consist primarily of exploring for, developing and producing crude oil and natural gas; liquefaction, transportation and regasification associated with liquefied natural gas; transporting crude oil by international oil export pipelines; processing, transporting, storage and marketing of natural gas, and a gas-to-liquids plant. Downstream operations consist primarily of refining of crude oil into petroleum products; marketing of crude oil and refined products; transporting of crude oil and refined products, and manufacturing and marketing of commodity petrochemicals.
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