Shell (NYSE:SHEL – Get Free Report) and ZaZa Energy (OTCMKTS:ZAZA – Get Free Report) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.
Earnings and Valuation
This table compares Shell and ZaZa Energy’s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Shell | $302.14 billion | 0.75 | $19.36 billion | $5.42 | 13.07 |
ZaZa Energy | N/A | N/A | N/A | N/A | N/A |
Shell has higher revenue and earnings than ZaZa Energy.
Analyst Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Shell | 0 | 2 | 3 | 0 | 2.60 |
ZaZa Energy | 0 | 0 | 0 | 0 | N/A |
Shell presently has a consensus target price of $79.67, suggesting a potential upside of 12.49%.
Insider and Institutional Ownership
28.6% of Shell shares are owned by institutional investors. 1.0% of Shell shares are owned by company insiders. Comparatively, 56.9% of ZaZa Energy shares are owned by company insiders. 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
Shell has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, ZaZa Energy has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.
Profitability
This table compares Shell and ZaZa Energy’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Shell | 5.83% | 13.83% | 6.44% |
ZaZa Energy | N/A | N/A | N/A |
Summary
Shell beats ZaZa Energy on 6 of the 8 factors compared between the two stocks.
About Shell
Shell plc operates as an energy and petrochemical company Europe, Asia, Oceania, Africa, the United States, and Rest of the Americas. The company operates through Integrated Gas, Upstream, Marketing, Chemicals and Products, and Renewables and Energy Solutions 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 to deliver gas to market. The company also markets and trades natural gas, liquefied natural gas (LNG), crude oil, electricity, carbon-emission rights; and markets and sells LNG as a fuel for heavy-duty vehicles. In addition, it trades in and refines crude oil and other feed stocks, such as low-carbon fuels, lubricants, bitumen, sulphur, gasoline, diesel, aviation fuel, and marine fuel; produces and sells petrochemicals for industrial use; 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. Additionally, it generates electricity through wind and solar resources; produces and sells hydrogen; and provides electric vehicle charging services. The company was formerly known as Royal Dutch Shell plc and changed its name to Shell plc in January 2022. Shell plc was founded in 1907 and is headquartered in London, the United Kingdom.
About ZaZa Energy
ZaZa Energy Corporation, an independent oil and gas company, focuses on the exploration and production of unconventional and conventional oil and gas assets in the United States. The company's properties include the Eagle Ford East Trend comprising approximately 41,000 net acres in Houston, Leon, Madison, Grimes, Walker, Trinity, and Montgomery counties in East Texas; and Eagle Ford Trend covering approximately 3,700 net acres located in DeWitt and Lavaca counties in South Texas. ZaZa Energy Corporation is headquartered in Houston, Texas.
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