ConocoPhillips (COP) versus Vertex Energy (VTNR) Head-To-Head Analysis

Vertex Energy (NASDAQ: VTNR) and ConocoPhillips (NYSE:COP) are both industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.

Risk and Volatility

Vertex Energy has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, ConocoPhillips has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.

Dividends

ConocoPhillips pays an annual dividend of $1.14 per share and has a dividend yield of 1.7%. Vertex Energy does not pay a dividend. ConocoPhillips pays out 190.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Vertex Energy and ConocoPhillips’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vertex Energy -4.93% -22.70% -7.92%
ConocoPhillips -1.64% 6.69% 2.76%

Earnings and Valuation

This table compares Vertex Energy and ConocoPhillips’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vertex Energy $145.50 million 0.23 -$8.43 million ($0.36) -2.83
ConocoPhillips $32.58 billion 2.47 -$855.00 million $0.60 114.57

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

Insider and Institutional Ownership

13.3% of Vertex Energy shares are owned by institutional investors. Comparatively, 70.9% of ConocoPhillips shares are owned by institutional investors. 29.2% of Vertex Energy shares are owned by insiders. Comparatively, 0.9% of ConocoPhillips 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.

Analyst Ratings

This is a breakdown of recent ratings for Vertex Energy and ConocoPhillips, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vertex Energy 0 1 0 0 2.00
ConocoPhillips 0 7 15 0 2.68

Vertex Energy presently has a consensus price target of $1.00, suggesting a potential downside of 1.96%. ConocoPhillips has a consensus price target of $66.32, suggesting a potential downside of 3.53%. Given Vertex Energy’s higher possible upside, research analysts clearly believe Vertex Energy is more favorable than ConocoPhillips.

Summary

ConocoPhillips beats Vertex Energy on 12 of the 16 factors compared between the two stocks.

About Vertex Energy

Vertex Energy, Inc., an environmental services company, provides a range of services designed to aggregate, process, and recycle industrial and commercial waste systems in 15 states, primarily in the Gulf Coast, Midwest, and Mid-Atlantic regions of the United States. The company operates in three divisions: Black Oil, Refining and Marketing, and Recovery. The Black Oil division collects and purchases used motor oil directly from third-party generators; aggregates used motor oil from a network of local and regional collectors; and sells used motor oil to customers for use as a feedstock or replacement fuel for industrial burners. This division also produces and sells a vacuum gas oil product to refineries and marine fuels market; and base oil product to lubricant packagers and distributors. The Refining and Marketing division gathers hydrocarbon streams in the form of petroleum distillates, transmix, and other chemical products that are purchased from pipeline operators, refineries, chemical processing facilities, and third-party providers; and sells end products, such as gasoline blendstock, pygas, and fuel oil cutter stock to oil companies or to petroleum trading and blending companies. The Recovery division generates solutions for the recovery and management of hydrocarbon streams; and provides dismantling, demolition, decommission, and marine salvage services, as well as owns and operates a fleet of trucks and other vehicles used for shipping and handling equipment and scrap materials. Vertex Energy, Inc. is headquartered in Houston, Texas.

About ConocoPhillips

ConocoPhillips explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids worldwide. Its portfolio includes North American tight oil and oil sands assets in Canada; conventional assets in North America, Europe, Asia, and Australia; various LNG developments; and an inventory of conventional and unconventional exploration prospects. The company was founded in 1917 and is headquartered in Houston, Texas.

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