Equinor ASA (EQNR) and Chevron (CVX) Critical Survey

Equinor ASA (NYSE:EQNR) and Chevron (NYSE:CVX) are both large-cap oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.

Earnings & Valuation

This table compares Equinor ASA and Chevron’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Equinor ASA $61.19 billion 1.47 $4.59 billion $1.38 19.48
Chevron $141.72 billion 1.59 $9.20 billion $3.70 31.83

Chevron has higher revenue and earnings than Equinor ASA. Equinor ASA is trading at a lower price-to-earnings ratio than Chevron, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Equinor ASA has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, Chevron has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Dividends

Equinor ASA pays an annual dividend of $0.67 per share and has a dividend yield of 2.5%. Chevron pays an annual dividend of $4.48 per share and has a dividend yield of 3.8%. Equinor ASA pays out 48.6% of its earnings in the form of a dividend. 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. Chevron has increased its dividend for 32 consecutive years. Chevron is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

5.2% of Equinor ASA shares are held by institutional investors. Comparatively, 64.8% of Chevron shares are held by institutional investors. 0.5% of Chevron shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Equinor ASA and Chevron’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Equinor ASA 6.69% 13.09% 4.68%
Chevron 7.87% 6.89% 4.06%

Analyst Recommendations

This is a summary of recent ratings and price targets for Equinor ASA and Chevron, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Equinor ASA 0 5 2 0 2.29
Chevron 0 8 15 1 2.71

Chevron has a consensus price target of $137.84, suggesting a potential upside of 17.04%. Given Chevron’s stronger consensus rating and higher possible upside, analysts clearly believe Chevron is more favorable than Equinor ASA.

Summary

Chevron beats Equinor ASA on 15 of the 18 factors compared between the two stocks.

About Equinor ASA

Equinor ASA, an energy company, explores for, produces, transports, refines, and markets petroleum and petroleum-derived products, and other forms of energy in Norway and internationally. The company operates through Development & Production Norway; Development & Production USA; Development & Production International; Marketing, Midstream & Processing; New Energy Solutions; Technology, Projects & Drilling; Exploration; and Global Strategy & Business Development segments. It also transports, processes, manufactures, markets, and trades in oil and gas commodities, such as crude and condensate products, gas liquids, natural gas, and liquefied natural gas; markets and trades in electricity and emission rights; and operates refineries, processing and power plants, and terminals. In addition, the company develops wind, and carbon capture and storage projects, as well as offers other renewable energy and low-carbon energy solutions. As of December 31, 2017, it had proved oil and gas reserves of 5,367 million barrels of oil equivalent. The company was formerly known as Statoil ASA and changed its name to Equinor ASA in May 2018. Equinor ASA was founded in 1972 and is headquartered in Stavanger, Norway.

About Chevron

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.

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