Sunoco (NYSE:SUN – Get Free Report) and OPAL Fuels (NASDAQ:OPAL – Get Free Report) are both energy companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.
Analyst Recommendations
This is a summary of current recommendations and price targets for Sunoco and OPAL Fuels, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sunoco | 0 | 1 | 8 | 1 | 3.00 |
| OPAL Fuels | 2 | 1 | 0 | 0 | 1.33 |
Sunoco presently has a consensus price target of $79.75, indicating a potential upside of 12.50%. OPAL Fuels has a consensus price target of $2.40, indicating a potential upside of 47.24%. Given OPAL Fuels’ higher probable upside, analysts clearly believe OPAL Fuels is more favorable than Sunoco.
Profitability
This table compares Sunoco and OPAL Fuels’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sunoco | 2.88% | 18.78% | 4.29% |
| OPAL Fuels | 0.65% | 15.54% | 0.22% |
Institutional & Insider Ownership
24.3% of Sunoco shares are owned by institutional investors. Comparatively, 12.2% of OPAL Fuels shares are owned by institutional investors. 85.7% of OPAL Fuels shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Sunoco and OPAL Fuels”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sunoco | $39.58 billion | 0.37 | $527.00 million | $4.52 | 15.68 |
| OPAL Fuels | $348.98 million | 0.82 | $14.75 million | ($0.01) | -163.00 |
Sunoco has higher revenue and earnings than OPAL Fuels. OPAL Fuels is trading at a lower price-to-earnings ratio than Sunoco, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Sunoco has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500. Comparatively, OPAL Fuels has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.
Summary
Sunoco beats OPAL Fuels on 11 of the 15 factors compared between the two stocks.
About Sunoco
Sunoco LP, together with its subsidiaries, distributes and retails motor fuels in the United States. It operates through two segments: Fuel Distribution and Marketing, and All Other. The Fuel Distribution and Marketing segment purchases motor fuel, as well as other petroleum products, such as propane and lubricating oil from independent refiners and oil companies and supplies it to company-operated retail stores, independently operated commission agents, and retail stores, as well as other commercial customers, including unbranded retail stores, other fuel distributors, school districts, municipalities, and other industrial customers. It owns and operates retail stores under the APlus and Aloha Island Mart brand names; and offers food, beverages, snacks, grocery and non-food merchandise, motor fuels, and other services. The All Other segment includes partnership credit card services, franchise royalties, and retail operations; and offers credit card processing, car washes, lottery, automated teller machines, money order, prepaid phone cards, and wireless services. The company was formerly known as Susser Petroleum Partners LP and changed its name to Sunoco LP in 2014. Sunoco LP was founded in 1886 and is headquartered in Dallas, Texas.
About OPAL Fuels
OPAL Fuels Inc., together with its subsidiaries, engages in the production and distribution of renewable natural gas for use as a vehicle fuel for heavy and medium-duty trucking fleets. It also designs, develops, constructs, operates, and services fueling stations for trucking fleets that use natural gas to displace diesel as transportation fuel. In addition, it offers design, development, and construction services for hydrogen fueling stations. Further, the company engages in the generation and sale of renewable power to utilities. OPAL Fuels Inc. is based in White Plains, New York.
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