Financial Analysis: BP p.l.c. (BP) vs. The Competition

BP p.l.c. (NYSE: BP) is one of 38 publicly-traded companies in the “Oil & Gas Refining and Marketing” industry, but how does it weigh in compared to its competitors? We will compare BP p.l.c. to related companies based on the strength of its profitability, risk, dividends, valuation, earnings, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares BP p.l.c. and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
BP p.l.c. $209.85 billion $19.97 billion 34.00
BP p.l.c. Competitors $45.68 billion $4.44 billion 22.98

BP p.l.c. has higher revenue and earnings than its competitors. BP p.l.c. is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

BP p.l.c. has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, BP p.l.c.’s competitors have a beta of 1.30, indicating that their average share price is 30% more volatile than the S&P 500.

Institutional & Insider Ownership

10.1% of BP p.l.c. shares are held by institutional investors. Comparatively, 47.2% of shares of all “Oil & Gas Refining and Marketing” companies are held by institutional investors. 1.0% of BP p.l.c. shares are held by insiders. Comparatively, 11.7% of shares of all “Oil & Gas Refining and Marketing” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares BP p.l.c. and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BP p.l.c. 1.74% 3.64% 1.34%
BP p.l.c. Competitors -1.03% 3.80% 1.57%

Dividends

BP p.l.c. pays an annual dividend of $2.38 per share and has a dividend yield of 6.1%. BP p.l.c. pays out 207.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & Gas Refining and Marketing” companies pay a dividend yield of 5.1% and pay out 864.8% of their earnings in the form of a dividend. BP p.l.c. is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent ratings and price targets for BP p.l.c. and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BP p.l.c. 2 6 11 0 2.47
BP p.l.c. Competitors 363 1714 2130 109 2.46

BP p.l.c. presently has a consensus target price of $36.58, suggesting a potential downside of 6.46%. As a group, “Oil & Gas Refining and Marketing” companies have a potential upside of 13.30%. Given BP p.l.c.’s competitors higher probable upside, analysts plainly believe BP p.l.c. has less favorable growth aspects than its competitors.

Summary

BP p.l.c. beats its competitors on 8 of the 15 factors compared.

About BP p.l.c.

BP p.l.c. is an integrated oil and gas company. The Company owns an interest in OJSC Oil Company Rosneft (Rosneft), an oil and gas company. The Company’s segments include Upstream, Downstream, Rosneft, and Other businesses and corporate. The Upstream segment is engaged in oil and natural gas exploration, field development and production, as well as midstream transportation, storage and processing. The Downstream segment has global manufacturing and marketing operations. The Rosneft segment has a resource base of hydrocarbons onshore and offshore. The Other businesses and corporate segment comprises the biofuels and wind businesses, shipping and treasury functions, and corporate activities around the world. The Company provides its customers with fuel for transportation, energy for heat and light, lubricants to keep engines moving and the petrochemicals products used to make everyday items as diverse as paints, clothes and packaging.

Receive News & Ratings for BP p.l.c. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for BP p.l.c. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply