Ecopetrol (NYSE:EC – Get Free Report) and Toro (NASDAQ:TORO – Get Free Report) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.
Institutional and Insider Ownership
1.7% of Toro shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Ecopetrol has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, Toro has a beta of 2.59, meaning that its share price is 159% more volatile than the S&P 500.
Valuation & Earnings
This table compares Ecopetrol and Toro”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ecopetrol | $29.56 billion | 1.12 | $2.10 billion | $1.89 | 8.54 |
| Toro | $21.08 million | 4.42 | $5.93 million | ($0.11) | -39.45 |
Ecopetrol has higher revenue and earnings than Toro. Toro is trading at a lower price-to-earnings ratio than Ecopetrol, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Ecopetrol and Toro’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ecopetrol | 11.46% | 14.50% | 5.42% |
| Toro | 16.42% | 2.04% | 1.17% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Ecopetrol and Toro, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ecopetrol | 1 | 7 | 0 | 1 | 2.11 |
| Toro | 0 | 1 | 0 | 0 | 2.00 |
Ecopetrol currently has a consensus price target of $15.95, indicating a potential downside of 1.15%. Given Ecopetrol’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Ecopetrol is more favorable than Toro.
Summary
Ecopetrol beats Toro on 9 of the 13 factors compared between the two stocks.
About Ecopetrol
Ecopetrol S.A. operates as an integrated energy company. The company operates through four segments: Exploration and Production; Transport and Logistics; Refining, Petrochemical and Biofuels; and Electric Power Transmission and Toll Roads Concessions. It engages in the exploration and production of oil and gas; transportation of crude oil, motor fuels, fuel oil, and other refined products, including diesel, jet, and biofuels; processing and refining crude oil; distribution of natural gas and LPG; sale of refined and petrochemical products; supplying of electric power transmission services; design, development, construction, operation, and maintenance of road and energy infrastructure projects; and supplying of information technology and telecommunications services. As of December 31, 2022, the company had approximately 9,127 kilometers of crude oil and multi-purpose pipelines. It also produces and commercializes polypropylene resins and compounds, and masterbatches; and offers industrial service sales to customers and specialized management services. It has operations in Colombia, the United States, Asia, Central America and the Caribbean, Europe, and South America. The company was formerly known as Empresa Colombiana de Petróleos and changed its name to Ecopetrol S.A. in June 2003. Ecopetrol S.A. was incorporated in 1948 and is headquartered in Bogotá, Colombia.
About Toro
Toro Corp., a shipping company, acquires, owns, charters, and operates oceangoing tanker vessels and provides seaborne transportation services for crude oil LPG, and refined petroleum products worldwide. The company operates in three segments: Aframax/LR2 Tanker, Handysize Tanker, and LPG Carrier. As of December 31, 2023, it operated a fleet of one Handysize tanker vessel; one Aframax/LR2 vessel; and four LPG carrier vessels with an aggregate cargo carrying capacity of 0.1 million deadweight ton. Toro Corp. was incorporated in 2022 and is based in Limassol, Cyprus.
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