BP Prudhoe Bay Royalty Trust (BPT) and Chevron (CVX) Financial Review

BP Prudhoe Bay Royalty Trust (NYSE:BPT) and Chevron (NYSE:CVX) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and target prices for BP Prudhoe Bay Royalty Trust and Chevron, 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
Chevron 0 5 13 1 2.79

Chevron has a consensus target price of $136.16, suggesting a potential upside of 12.37%. Given Chevron’s higher probable upside, analysts clearly believe Chevron is more favorable than BP Prudhoe Bay Royalty Trust.

Earnings & Valuation

This table compares BP Prudhoe Bay Royalty Trust and Chevron’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BP Prudhoe Bay Royalty Trust $114.37 million 4.09 $113.28 million N/A N/A
Chevron $166.34 billion 1.38 $14.82 billion $8.25 14.69

Chevron has higher revenue and earnings than BP Prudhoe Bay Royalty Trust.

Risk & Volatility

BP Prudhoe Bay Royalty Trust has a beta of 0.02, suggesting that its stock price is 98% less volatile than the S&P 500. Comparatively, Chevron has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Dividends

BP Prudhoe Bay Royalty Trust pays an annual dividend of $1.38 per share and has a dividend yield of 6.3%. Chevron pays an annual dividend of $4.76 per share and has a dividend yield of 3.9%. Chevron pays out 57.7% of its earnings in the form of a dividend. BP Prudhoe Bay Royalty Trust has raised its dividend for 2 consecutive years and Chevron has raised its dividend for 33 consecutive years.

Insider & Institutional Ownership

4.1% of BP Prudhoe Bay Royalty Trust shares are owned by institutional investors. Comparatively, 66.1% of Chevron shares are owned by institutional investors. 0.5% of Chevron shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares BP Prudhoe Bay Royalty Trust and Chevron’s 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%
Chevron 8.91% 9.78% 5.87%

Summary

Chevron beats BP Prudhoe Bay Royalty Trust on 10 of the 16 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.

About Chevron

Chevron Corporation, through its subsidiaries, engages in integrated energy, chemicals, and petroleum operations worldwide. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as operates a gas-to-liquids plant. The Downstream segment engages in refining crude oil into petroleum products; marketing crude oil and refined products; transporting crude oil and refined products through pipeline, marine vessel, motor equipment, and rail car; and manufacturing and marketing commodity petrochemicals, and fuel and lubricant additives, as well as plastics for industrial uses. It is also involved in the cash management and debt financing activities; insurance operations; real estate activities; and technology businesses. The company was formerly known as ChevronTexaco Corporation and changed its name to Chevron Corporation in 2005. Chevron Corporation was founded in 1879 and is headquartered in San Ramon, California.

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