Surge Energy (OTCMKTS:ZPTAF – Get Free Report) and SunocoCorp (NYSE:SUNC – Get Free Report) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.
Profitability
This table compares Surge Energy and SunocoCorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Surge Energy | N/A | N/A | N/A |
| SunocoCorp | N/A | N/A | N/A |
Analyst Ratings
This is a summary of current recommendations for Surge Energy and SunocoCorp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Surge Energy | 0 | 1 | 1 | 0 | 2.50 |
| SunocoCorp | 1 | 1 | 3 | 1 | 2.67 |
Institutional and Insider Ownership
18.0% of Surge Energy shares are owned by institutional investors. 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.
Earnings & Valuation
This table compares Surge Energy and SunocoCorp”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Surge Energy | N/A | N/A | N/A | $0.40 | 16.08 |
| SunocoCorp | $25.20 billion | 0.16 | -$5.00 million | $2.89 | 26.74 |
Surge Energy has higher earnings, but lower revenue than SunocoCorp. Surge Energy is trading at a lower price-to-earnings ratio than SunocoCorp, indicating that it is currently the more affordable of the two stocks.
Dividends
Surge Energy pays an annual dividend of $0.42 per share and has a dividend yield of 6.5%. SunocoCorp pays an annual dividend of $4.01 per share and has a dividend yield of 5.2%. Surge Energy pays out 105.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SunocoCorp pays out 138.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Surge Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
SunocoCorp beats Surge Energy on 7 of the 10 factors compared between the two stocks.
About Surge Energy
Surge Energy Inc. explores, develops, and produces oil and gas in western Canada. Its principal properties are located in the areas of Sparky, Southeast Saskatchewan, Carbonates, Valhalla, and Shaunavon in Alberta and Saskatchewan. The company was formerly known as Zapata Energy Corporation and changed its name to Surge Energy Inc. in June 2010. Surge Energy Inc. was incorporated in 1998 and is headquartered in Calgary, Canada.
About SunocoCorp
Sunoco LP is an energy infrastructure and fuel distribution master limited partnership. Sunoco LP is based in DALLAS.
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