BP Prudhoe Bay Royalty Trust (NYSE:BPT) and Hess (NYSE:HES) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.
Risk and Volatility
BP Prudhoe Bay Royalty Trust has a beta of 0.02, indicating that its share price is 98% less volatile than the S&P 500. Comparatively, Hess has a beta of 1.95, indicating that its share price is 95% more volatile than the S&P 500.
Valuation and Earnings
This table compares BP Prudhoe Bay Royalty Trust and Hess’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BP Prudhoe Bay Royalty Trust||$114.37 million||5.10||$113.28 million||N/A||N/A|
|Hess||$6.47 billion||2.95||-$282.00 million||($0.74)||-85.14|
BP Prudhoe Bay Royalty Trust has higher earnings, but lower revenue than Hess.
BP Prudhoe Bay Royalty Trust pays an annual dividend of $4.01 per share and has a dividend yield of 14.7%. Hess pays an annual dividend of $1.00 per share and has a dividend yield of 1.6%. Hess pays out -135.1% of its earnings in the form of a dividend. BP Prudhoe Bay Royalty Trust has increased its dividend for 2 consecutive years. BP Prudhoe Bay Royalty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
4.1% of BP Prudhoe Bay Royalty Trust shares are held by institutional investors. Comparatively, 90.7% of Hess shares are held by institutional investors. 12.1% of Hess 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.
This is a breakdown of recent recommendations for BP Prudhoe Bay Royalty Trust and Hess, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|BP Prudhoe Bay Royalty Trust||0||0||0||0||N/A|
Hess has a consensus price target of $69.08, suggesting a potential upside of 9.66%. Given Hess’ higher possible upside, analysts clearly believe Hess is more favorable than BP Prudhoe Bay Royalty Trust.
This table compares BP Prudhoe Bay Royalty Trust and Hess’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|BP Prudhoe Bay Royalty Trust||99.03%||16,432.79%||11,244.78%|
BP Prudhoe Bay Royalty Trust beats Hess on 8 of the 15 factors compared between the two stocks.
About BP Prudhoe Bay Royalty Trust
BP Prudhoe Bay Royalty Trust operates as a grantor trust in the United States. The company holds overriding royalty interest comprising a non-operational interest in minerals in the Prudhoe Bay oil field located on the North Slope of Alaska. The Prudhoe Bay field extends approximately 12 miles by 27 miles and contains approximately 150,000 gross productive acres. As of December 31, 2018, its estimated proved reserves were 15.772 million barrels of oil and condensate of which 15.638 million barrels are proved developed reserves; and 0.134 million barrels are proved undeveloped reserves. BP Prudhoe Bay Royalty Trust was founded in 1989 and is based in Houston, Texas.
Hess Corporation, an exploration and production company, develops, produces, purchases, transports, and sells crude oil, natural gas liquids (NGLs), and natural gas. It operates through two segments, Exploration and Production, and Midstream. The company conducts production operations primarily in the United States, Denmark, the Malaysia/Thailand Joint Development Area, and Malaysia; and exploration activities primarily offshore Guyana, Suriname, Canada, and in the Gulf of Mexico. As of December 31, 2017, it had total proved reserves of 1,154 million barrels of oil equivalent. The company is also involved in crude oil and natural gas gathering, processing of natural gas and the fractionation of NGLs, transportation of crude oil by rail car, terminaling and loading crude oil and natural gas liquids, and the storage and terminaling of propane primarily in the Bakken and Three Forks Shale plays in the Williston Basin area of North Dakota. The company was founded in 1920 and is headquartered in New York, New York.
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