Analyzing Teekay (NYSE:TK) & ConocoPhillips (NYSE:COP)

ConocoPhillips (NYSE:COP) and Teekay (NYSE:TK) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for ConocoPhillips and Teekay, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ConocoPhillips	2	6	17	2	2.70
Teekay	0	0	1	0	3.00

ConocoPhillips currently has a consensus price target of $143.29, suggesting a potential upside of 0.67%. Given ConocoPhillips’ higher probable upside, equities analysts plainly believe ConocoPhillips is more favorable than Teekay.

Earnings and Valuation

This table compares ConocoPhillips and Teekay”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ConocoPhillips	$61.55 billion	2.78	$7.99 billion	$7.56	18.83
Teekay	$949.52 million	1.32	$98.11 million	$2.08	6.97

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

Volatility & Risk

ConocoPhillips has a beta of 0.24, meaning that its share price is 76% less volatile than the S&P 500. Comparatively, Teekay has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500.

Profitability

This table compares ConocoPhillips and Teekay’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ConocoPhillips	14.22%	14.72%	7.77%
Teekay	15.78%	7.91%	7.26%

Insider and Institutional Ownership

82.4% of ConocoPhillips shares are owned by institutional investors. Comparatively, 46.7% of Teekay shares are owned by institutional investors. 0.1% of ConocoPhillips shares are owned by company insiders. Comparatively, 2.4% of Teekay shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

ConocoPhillips beats Teekay on 11 of the 15 factors compared between the two stocks.

About ConocoPhillips

ConocoPhillips explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids in the United States, Canada, China, Libya, Malaysia, Norway, the United Kingdom, and internationally. The company's portfolio includes unconventional plays in North America; conventional assets in North America, Europe, Asia, and Australia; global LNG developments; oil sands assets in Canada; and an inventory of global exploration prospects. ConocoPhillips was founded in 1917 and is headquartered in Houston, Texas.

About Teekay

Teekay Corporation engages in the international crude oil and other marine transportation services worldwide. The company owns and operates crude oil and refined product tankers. It also provides ship-to-ship support services; tanker commercial management operation services; and operational and maintenance marine services. As of March 1, 2024, the company operated a fleet of approximately 53 owned and chartered-in vessels. It serves energy and utility companies, major oil traders, large oil consumers and petroleum product producers, government agencies, and various other entities that depend upon marine transportation. Teekay Corporation was founded in 1973 and is headquartered in Hamilton, Bermuda.