Royal Dutch Shell (NYSE:RDS.A) and Pioneer Natural Resources (NYSE:PXD) are both large-cap oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Earnings and Valuation

This table compares Royal Dutch Shell and Pioneer Natural Resources’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Royal Dutch Shell $352.11 billion 0.35 $15.84 billion $4.04 7.46
Pioneer Natural Resources $9.30 billion 1.47 $756.00 million $8.18 10.13

Royal Dutch Shell has higher revenue and earnings than Pioneer Natural Resources. Royal Dutch Shell is trading at a lower price-to-earnings ratio than Pioneer Natural Resources, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Royal Dutch Shell has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Pioneer Natural Resources has a beta of 1.78, indicating that its stock price is 78% more volatile than the S&P 500.

Dividends

Royal Dutch Shell pays an annual dividend of $3.20 per share and has a dividend yield of 10.6%. Pioneer Natural Resources pays an annual dividend of $1.10 per share and has a dividend yield of 1.3%. Royal Dutch Shell pays out 79.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pioneer Natural Resources pays out 13.4% of its earnings in the form of a dividend. Pioneer Natural Resources has raised its dividend for 2 consecutive years.

Analyst Ratings

This is a summary of current ratings and recommmendations for Royal Dutch Shell and Pioneer Natural Resources, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Royal Dutch Shell 1 13 5 0 2.21
Pioneer Natural Resources 0 6 17 0 2.74

Royal Dutch Shell currently has a consensus price target of $64.33, suggesting a potential upside of 113.52%. Pioneer Natural Resources has a consensus price target of $126.30, suggesting a potential upside of 52.43%. Given Royal Dutch Shell’s higher probable upside, equities research analysts plainly believe Royal Dutch Shell is more favorable than Pioneer Natural Resources.

Profitability

This table compares Royal Dutch Shell and Pioneer Natural Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Royal Dutch Shell 3.00% 7.35% 3.50%
Pioneer Natural Resources 7.60% 10.46% 6.77%

Insider & Institutional Ownership

4.7% of Royal Dutch Shell shares are held by institutional investors. Comparatively, 88.6% of Pioneer Natural Resources shares are held by institutional investors. 1.0% of Royal Dutch Shell shares are held by company insiders. Comparatively, 0.9% of Pioneer Natural Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Pioneer Natural Resources beats Royal Dutch Shell on 12 of the 17 factors compared between the two stocks.

About Royal Dutch Shell

Royal Dutch Shell plc operates as an energy and petrochemical company worldwide. The company operates through Integrated Gas, Upstream, and Downstream segments. It explores for, and extracts crude oil, natural gas, and natural gas liquids; markets and transports oil and gas; produces gas-to-liquids fuels and other products; and operates upstream and midstream infrastructure necessary to deliver gas to market. The company also markets and trades natural gas, LNG, crude oil, electricity, carbon-emission rights; and markets and sells liquefied natural gas as a fuel for heavy-duty vehicles and marine vessels. In addition, it trades in and refines crude oil and other feed stocks, such as gasoline, diesel, heating oil, aviation fuel, marine fuel, biofuel, lubricants, bitumen, and sulphur; produces and sells petrochemicals; and manages oil sands activities. Further, the company produces base chemicals comprising ethylene, propylene, and aromatics, as well as intermediate chemicals, such as styrene monomer, propylene oxide, solvents, detergent alcohols, ethylene oxide, and ethylene glycol. Royal Dutch Shell plc was founded in 1907 and is headquartered in The Hague, the Netherlands.

About Pioneer Natural Resources

Pioneer Natural Resources Company operates as an independent oil and gas exploration and production company in the United States. The company explores for, develops, and produces oil, natural gas liquids (NGLs), and gas. It has operations primarily in the Permian Basin in West Texas, the Eagle Ford Shale play in South Texas, the Raton field in southeast Colorado, and the West Panhandle field in the Texas Panhandle. As of December 31, 2017, the company had proved undeveloped reserves and proved developed reserves of approximately 45 million barrels of oil, 22 million barrels of NGLs, and 291 billion cubic feet of gas; and owned interests in 10 gas processing plants and 4 treating facilities. Pioneer Natural Resources Company is headquartered in Irving, Texas.

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