BP (NYSE: BP) and Vertex Energy (NASDAQ:VTNR) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.
BP pays an annual dividend of $2.38 per share and has a dividend yield of 5.2%. Vertex Energy does not pay a dividend. BP pays out 126.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of current recommendations and price targets for BP and Vertex Energy, as reported by MarketBeat.com.
||Strong Buy Ratings
BP currently has a consensus price target of $43.75, suggesting a potential downside of 4.18%. Vertex Energy has a consensus price target of $1.00, suggesting a potential downside of 5.66%. Given BP’s stronger consensus rating and higher probable upside, analysts clearly believe BP is more favorable than Vertex Energy.
Volatility & Risk
BP has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, Vertex Energy has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.
Valuation & Earnings
This table compares BP and Vertex Energy’s gross revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
BP has higher revenue and earnings than Vertex Energy. Vertex Energy is trading at a lower price-to-earnings ratio than BP, indicating that it is currently the more affordable of the two stocks.
This table compares BP and Vertex Energy’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Insider and Institutional Ownership
10.2% of BP shares are owned by institutional investors. Comparatively, 13.3% of Vertex Energy shares are owned by institutional investors. 1.0% of BP shares are owned by insiders. Comparatively, 29.2% of Vertex Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
BP beats Vertex Energy on 13 of the 16 factors compared between the two stocks.
BP Company Profile
BP p.l.c. engages in energy business worldwide. It operates through three segments: Upstream, Downstream, and Rosneft. The Upstream segment is involved in the oil and natural gas exploration, field development, and production; midstream transportation, storage, and processing; and marketing and trading of liquefied natural gas (LNG), biogas, power and natural gas liquids (NGLs). This segment also engages in the ownership and management of crude oil and natural gas pipelines; processing facilities and export terminals; and LNG processing facilities and transportation, as well as in NGLs processing business. The Downstream segment refines, manufactures, markets, transports, supplies, and trades in crude oil, petroleum, and petrochemical products and related services to wholesale and retail customers. It offers gasoline, diesel, and aviation fuel; lubricants, and related products and services to the automotive, industrial, marine, and energy markets under the Castrol, BP, and Aral brands; and petrochemical products, such as purified terephthalic acid, paraxylene, acetic acid, olefins and derivatives, and specialty petrochemical products. The Rosneft segment engages in the exploration and production of hydrocarbons, as well as jet fuel, bunkering, bitumen, and lubricants activities. This segment also owns and operates 13 refineries in Russia; and approximately 2,960 retail service stations in Russia and internationally. The company also produces ethanol, bio-isobutanol, bio-power, and solar energy; transports hydrocarbon products through time-chartered and spot-chartered vessels; and holds interests in 14 onshore wind sites with a generation capacity of 1,432 megawatts through wind. BP p.l.c. was founded in 1889 and is headquartered in London, the United Kingdom.
Vertex Energy Company Profile
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.
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