ENI S.p.A. (NYSE: E) and Statoil ASA (NYSE:STO) are both large-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.

Institutional & Insider Ownership

1.7% of ENI S.p.A. shares are held by institutional investors. Comparatively, 5.0% of Statoil ASA shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

ENI S.p.A. has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Statoil ASA has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Dividends

ENI S.p.A. pays an annual dividend of $1.27 per share and has a dividend yield of 3.9%. Statoil ASA pays an annual dividend of $0.70 per share and has a dividend yield of 3.6%. ENI S.p.A. pays out 309.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Statoil ASA pays out -291.7% of its earnings in the form of a dividend. Statoil ASA has raised its dividend for 4 consecutive years.

Analyst Recommendations

This is a summary of current recommendations and price targets for ENI S.p.A. and Statoil ASA, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ENI S.p.A. 5 3 4 0 1.92
Statoil ASA 3 7 3 0 2.00

ENI S.p.A. currently has a consensus price target of $16.00, indicating a potential downside of 51.49%. Statoil ASA has a consensus price target of $17.67, indicating a potential downside of 9.54%. Given Statoil ASA’s stronger consensus rating and higher probable upside, analysts plainly believe Statoil ASA is more favorable than ENI S.p.A..

Valuation & Earnings

This table compares ENI S.p.A. and Statoil ASA’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ENI S.p.A. $75.00 billion 0.80 $13.24 billion $0.41 80.44
Statoil ASA $55.12 billion 1.15 $18.51 billion ($0.24) -81.37

Statoil ASA has higher revenue, but lower earnings than ENI S.p.A.. Statoil ASA is trading at a lower price-to-earnings ratio than ENI S.p.A., indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ENI S.p.A. and Statoil ASA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ENI S.p.A. 1.14% 2.23% 0.94%
Statoil ASA -1.32% 5.61% 1.93%

Summary

Statoil ASA beats ENI S.p.A. on 10 of the 16 factors compared between the two stocks.

ENI S.p.A. Company Profile

Eni SpA (Eni) is an Italy-based company engaged in the exploration, development and production of hydrocarbons, in the supply and marketing of gas, liquefied natural gas (LNG) and power, in the refining and marketing of petroleum products, in the production and marketing of basic petrochemicals, plastics and elastomers and in commodity trading. The Company’s segments include Exploration & Production, Gas & Power, and Refining & Marketing. Its Exploration & Production segment engages in oil and natural gas exploration and field development and production, as well as LNG operations in over 40 countries, including Italy, Libya, Egypt, Norway, the United Kingdom, Angola, Congo, Nigeria, the United States, Kazakhstan, Algeria, Australia, Venezuela, Iraq, Ghana and Mozambique. Its Gas & Power segment engages in supply, trading and marketing of gas, LNG and electricity, international gas transport activities and commodity trading and derivatives.

Statoil ASA Company Profile

Statoil ASA (Statoil) is an energy company. The Company is engaged in oil and gas exploration and production activities. The Company’s segments include Development and Production Norway (DPN), Development and Production International (DPI), Marketing, Midstream and Processing (MMP) and Other. DPN segment manages the Company’s upstream activities on the Norwegian continental shelf (NCS) and explores for and extracts crude oil, natural gas and natural gas liquids. DPI segment manages the Company’s upstream activities that are not included in the DPN and Development and Production USA (DPUSA) business areas. MMP segment manages its marketing and trading activities related to oil products and natural gas, transportation, processing and manufacturing, and the development of oil and gas. Other segment includes activities in New Energy Solutions (NES), Technology, Projects and Drilling (TPD), Global Strategy and Business Development (GSB), and Corporate staffs and support functions.

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