Comparing PetroChina (NYSE:PTR) and Galp Energia, SGPS (OTCMKTS:GLPEY)

PetroChina (NYSE:PTR) and Galp Energia, SGPS (OTCMKTS:GLPEY) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.

Earnings & Valuation

This table compares PetroChina and Galp Energia, SGPS’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PetroChina $280.26 billion 0.31 $2.75 billion $1.45 32.45
Galp Energia, SGPS $12.30 billion 0.65 -$664.29 million ($0.03) -161.25

PetroChina has higher revenue and earnings than Galp Energia, SGPS. Galp Energia, SGPS is trading at a lower price-to-earnings ratio than PetroChina, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

PetroChina has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Galp Energia, SGPS has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Dividends

PetroChina pays an annual dividend of $3.58 per share and has a dividend yield of 7.6%. Galp Energia, SGPS pays an annual dividend of $0.14 per share and has a dividend yield of 2.9%. PetroChina pays out 246.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Galp Energia, SGPS pays out -466.7% of its earnings in the form of a dividend.

Insider & Institutional Ownership

0.2% of PetroChina shares are owned by institutional investors. Comparatively, 0.1% of Galp Energia, SGPS 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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for PetroChina and Galp Energia, SGPS, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PetroChina 0 2 2 1 2.80
Galp Energia, SGPS 0 6 4 0 2.40

PetroChina presently has a consensus target price of $36.18, suggesting a potential downside of 23.11%. Galp Energia, SGPS has a consensus target price of $10.30, suggesting a potential upside of 112.92%. Given Galp Energia, SGPS’s higher probable upside, analysts clearly believe Galp Energia, SGPS is more favorable than PetroChina.

Profitability

This table compares PetroChina and Galp Energia, SGPS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PetroChina 4.60% 7.43% 4.05%
Galp Energia, SGPS 0.76% -0.48% -0.16%

Summary

PetroChina beats Galp Energia, SGPS on 10 of the 16 factors compared between the two stocks.

About PetroChina

PetroChina Company Limited, together with its subsidiaries, engages in a range of petroleum related products, services, and activities in Mainland China and internationally. It operates through Exploration and Production, Refining and Chemicals, Marketing, and Natural Gas and Pipeline segments. The Exploration and Production segment engages in the exploration, development, production, and marketing of crude oil and natural gas. The Refining and Chemicals segment refines crude oil and petroleum products; and produces and markets primary petrochemical products, derivative petrochemical products, and other chemical products. The Marketing segment is involved in marketing of refined products and trading business. The Natural Gas and Pipeline segment engages in the transmission of natural gas, crude oil, and refined products; and sale of natural gas. As of December 31, 2020, the company had a total length of 31,151 km, including 22,555 km of natural gas pipelines, 7,190 km of crude oil pipelines, and 1,406 km of refined product pipelines. The company is also involved in the exploration, development, and production of oil sands and coalbed methane; trading of crude oil and petrochemical products; storage, chemical engineering, storage facilities, service station, and transportation facilities and related businesses; and production and sales of basic and derivative chemical, and other chemical products. The company was founded in 1999 and is headquartered in Beijing, the People's Republic of China. PetroChina Company Limited is a subsidiary of China National Petroleum Corporation.

About Galp Energia, SGPS

Galp Energia SGPS SA engages in the exploration and production of oil and gas. It operates through the following segments: Upstream; Refining and Midstream; Commercial; and Renewables and New Businesses. The Upstream segment includes exploration, development, and production of hydrocarbons, mainly focused on Brazil, Mozambique, and Angola. The Refining and Midstream segment owns refineries in Portugal, and also includes all activities relating to the wholesale marketing of oil products, gas, and electricity. The Commercial segment encompasses the area of retail to final customers of oil, gas, and electricity. The Renewables and New Businesses segment covers Galp’s presence in the renewable energies industry. The company was founded on April 22, 1999 and is headquartered in Lisbon, Portugal.

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