Reviewing Sasol (NYSE:SSL) and Its Competitors

Sasol (NYSE: SSL) is one of 37 publicly-traded companies in the “Oil & Gas Refining and Marketing” industry, but how does it contrast to its competitors? We will compare Sasol to related businesses based on the strength of its institutional ownership, analyst recommendations, dividends, profitability, valuation, earnings and risk.

Profitability

This table compares Sasol and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sasol N/A N/A N/A
Sasol Competitors -0.99% 4.01% 1.86%

Dividends

Sasol pays an annual dividend of $0.74 per share and has a dividend yield of 2.1%. Sasol pays out 26.4% of its earnings in the form of a dividend. As a group, “Oil & Gas Refining and Marketing” companies pay a dividend yield of 4.8% and pay out 308.1% of their earnings in the form of a dividend.

Insider & Institutional Ownership

2.0% of Sasol shares are owned by institutional investors. Comparatively, 48.1% of shares of all “Oil & Gas Refining and Marketing” companies are owned by institutional investors. 1.0% of Sasol shares are owned by insiders. Comparatively, 11.7% of shares of all “Oil & Gas Refining and Marketing” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Sasol has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Sasol’s competitors have a beta of 1.29, indicating that their average share price is 29% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Sasol and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sasol 0 2 1 0 2.33
Sasol Competitors 435 1950 2564 127 2.47

As a group, “Oil & Gas Refining and Marketing” companies have a potential upside of 9.23%. Given Sasol’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Sasol has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares Sasol and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Sasol $12.68 billion $1.50 billion 12.87
Sasol Competitors $40.29 billion $685.91 million 252.91

Sasol’s competitors have higher revenue, but lower earnings than Sasol. Sasol is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Sasol competitors beat Sasol on 12 of the 15 factors compared.

Sasol Company Profile

Sasol Limited is an international integrated chemicals and energy company. The Company develops and commercializes technologies, and builds and operates facilities to produce a range of product streams, including liquid fuels, chemicals and low-carbon electricity. The Company’s operating business units include Mining and, Exploration and Production International. Its Strategic Business Units are energy, base chemicals, performance chemicals and group functions. The Company’s regional operating hubs include Southern Africa Operations and International Operations. The Company operates approximately six coal mines that supply feedstock for its Secunda (Sasol Synfuels) and Sasolburg (Sasolburg Operations) complexes in South Africa. It offers market ready fuels and oils, such as bitumen; industrial heating fuels; naphtha and illuminating paraffin transport fuels; automotive lubricants; industrial lubricants; greases; cleansers and degreasers; automotive fuels, and burner fuels.

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

Leave a Reply