Vertex Energy (VTNR) vs. Statoil (STO) Critical Survey

Vertex Energy (NASDAQ: VTNR) and Statoil (NYSE:STO) are both industrial products 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.

Dividends

Statoil pays an annual dividend of $0.32 per share and has a dividend yield of 1.2%. Vertex Energy does not pay a dividend. Statoil pays out 23.2% of its earnings in the form of a dividend. Statoil has raised its dividend for 5 consecutive years.

Earnings and Valuation

This table compares Vertex Energy and Statoil’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vertex Energy $145.50 million 0.24 -$8.43 million ($0.36) -2.89
Statoil $61.19 billion 1.47 $4.59 billion $1.38 19.67

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

Profitability

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

Net Margins Return on Equity Return on Assets
Vertex Energy -4.93% -22.70% -7.92%
Statoil 7.34% 12.32% 4.36%

Volatility and Risk

Vertex Energy has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, Statoil has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Institutional & Insider Ownership

13.3% of Vertex Energy shares are held by institutional investors. Comparatively, 5.0% of Statoil shares are held by institutional investors. 29.2% of Vertex Energy 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.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vertex Energy 0 1 0 0 2.00
Statoil 3 10 2 0 1.93

Vertex Energy currently has a consensus price target of $1.00, indicating a potential downside of 3.85%. Statoil has a consensus price target of $21.50, indicating a potential downside of 20.78%. Given Vertex Energy’s stronger consensus rating and higher possible upside, research analysts clearly believe Vertex Energy is more favorable than Statoil.

Summary

Statoil beats Vertex Energy on 11 of the 16 factors compared between the two stocks.

About Vertex Energy

Vertex Energy, Inc., an environmental services company, provides a range of services designed to aggregate, process, and recycle industrial and commercial waste systems in 15 states, primarily in the Gulf Coast, Midwest, and Mid-Atlantic regions of the United States. The company operates in three divisions: Black Oil, Refining and Marketing, and Recovery. The Black Oil division collects and purchases used motor oil directly from third-party generators; aggregates used motor oil from a network of local and regional collectors; and sells used motor oil to customers for use as a feedstock or replacement fuel for industrial burners. This division also produces and sells a vacuum gas oil product to refineries and marine fuels market; and base oil product to lubricant packagers and distributors. The Refining and Marketing division gathers hydrocarbon streams in the form of petroleum distillates, transmix, and other chemical products that are purchased from pipeline operators, refineries, chemical processing facilities, and third-party providers; and sells end products, such as gasoline blendstock, pygas, and fuel oil cutter stock to oil companies or to petroleum trading and blending companies. The Recovery division generates solutions for the recovery and management of hydrocarbon streams; and provides dismantling, demolition, decommission, and marine salvage services, as well as owns and operates a fleet of trucks and other vehicles used for shipping and handling equipment and scrap materials. Vertex Energy, Inc. is headquartered in Houston, Texas.

About Statoil

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.

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