Chevron (NYSE: CVX) and China Petroleum & Chemical (NYSE:SNP) are both large-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.
Risk & Volatility
Chevron has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, China Petroleum & Chemical has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.
This table compares Chevron and China Petroleum & Chemical’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
|China Petroleum & Chemical
Institutional & Insider Ownership
64.4% of Chevron shares are owned by institutional investors. Comparatively, 1.1% of China Petroleum & Chemical shares are owned by institutional investors. 0.4% of Chevron shares are owned by insiders. Comparatively, 92.2% of China Petroleum & Chemical shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Chevron and China Petroleum & Chemical’s revenue, earnings per share and valuation.
||Earnings Per Share
|China Petroleum & Chemical
Chevron has higher earnings, but lower revenue than China Petroleum & Chemical. China Petroleum & Chemical is trading at a lower price-to-earnings ratio than Chevron, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Chevron and China Petroleum & Chemical, as provided by MarketBeat.com.
||Strong Buy Ratings
|China Petroleum & Chemical
Chevron presently has a consensus target price of $133.00, suggesting a potential upside of 5.05%. Given Chevron’s higher possible upside, research analysts clearly believe Chevron is more favorable than China Petroleum & Chemical.
Chevron pays an annual dividend of $4.48 per share and has a dividend yield of 3.5%. China Petroleum & Chemical pays an annual dividend of $3.55 per share and has a dividend yield of 3.8%. Chevron pays out 121.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. China Petroleum & Chemical pays out 63.7% of its earnings in the form of a dividend. Chevron has increased its dividend for 32 consecutive years. China Petroleum & Chemical is clearly the better dividend stock, given its higher yield and lower payout ratio.
China Petroleum & Chemical beats Chevron on 9 of the 17 factors compared between the two stocks.
Chevron Corporation, through its subsidiaries, engages in integrated energy, chemicals, and petroleum operations worldwide. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as operates a gas-to-liquids plant. The Downstream segment engages in refining crude oil into petroleum products; marketing crude oil and refined products; transporting crude oil and refined products through pipeline, marine vessel, motor equipment, and rail car; and manufacturing and marketing commodity petrochemicals, and fuel and lubricant additives, as well as plastics for industrial uses. It is also involved in the cash management and debt financing activities; insurance operations; real estate activities; and technology businesses. The company was formerly known as ChevronTexaco Corporation and changed its name to Chevron Corporation in 2005. Chevron Corporation was founded in 1879 and is headquartered in San Ramon, California.
About China Petroleum & Chemical
China Petroleum & Chemical Corporation, an energy and chemical company, engages in the oil and gas, and chemical operations and businesses in the People's Republic of China. It operates through five segments: Exploration and Production, Refining, Marketing and Distribution, Chemicals, and Corporate and Others. The company explores and develops oil fields; produces crude oil and natural gas; processes and purifies crude oil; and manufactures and sells petroleum products. It also owns and operates oil depots and service stations; and distributes and sells refined petroleum products, including gasoline and diesel through wholesale and retail sales networks. In addition, the company manufactures and sells petrochemical and derivative petrochemical products; and other chemical products, such as basic organic chemicals, synthetic resins, synthetic fiber monomers and polymers, synthetic fibers, synthetic rubber, and chemical fertilizers. Further, it is involved in the pipeline transportation and sale of petroleum and natural gas; production, sale, storage, and transportation of refinery and coal chemical products; the import and export of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; research, development, and application of technologies and information; production and sale of catalyst products, lubricant base oil, polyester chips and fibers, plastics, and intermediate petrochemical products; production, sale, research, and development of ethylene and downstream byproducts; and coal chemical industry investment management activities. The company was founded in 2000 and is headquartered in Beijing, the People's Republic of China. China Petroleum & Chemical Corporation is a subsidiary of China Petrochemical Corporation.
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