ConocoPhillips (COP) vs. YPF (YPF) Critical Comparison

YPF (NYSE:YPF) and ConocoPhillips (NYSE:COP) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations and price targets for YPF and ConocoPhillips, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
YPF 0 2 4 1 2.86
ConocoPhillips 0 8 12 0 2.60

YPF presently has a consensus price target of $25.94, indicating a potential upside of 72.34%. ConocoPhillips has a consensus price target of $73.89, indicating a potential upside of 10.41%. Given YPF’s stronger consensus rating and higher probable upside, equities research analysts clearly believe YPF is more favorable than ConocoPhillips.

Profitability

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

Net Margins Return on Equity Return on Assets
YPF 8.70% 15.45% 4.92%
ConocoPhillips 16.08% 14.62% 6.43%

Institutional & Insider Ownership

24.9% of YPF shares are owned by institutional investors. Comparatively, 71.9% of ConocoPhillips shares are owned by institutional investors. 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.

Dividends

ConocoPhillips pays an annual dividend of $1.22 per share and has a dividend yield of 1.9%. YPF does not pay a dividend. ConocoPhillips pays out 203.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. YPF has increased its dividend for 2 consecutive years.

Valuation & Earnings

This table compares YPF and ConocoPhillips’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
YPF $15.27 billion 0.39 $745.33 million $1.90 7.92
ConocoPhillips $32.58 billion 2.30 -$855.00 million $0.60 108.68

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

Risk & Volatility

YPF has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500. Comparatively, ConocoPhillips has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.

YPF Company Profile

YPF Sociedad Anonima, an energy company, operates in the oil and gas upstream and downstream activities in Argentina. The company involved in the exploration, development, and production of crude oil, natural gas, and liquefied petroleum gas (LPG). It is also engages in the refining, marketing, transportation, and distribution of oil, petroleum products, petroleum derivatives, petrochemicals, LPG, and bio-fuels, as well as in gas separation and natural gas distribution operations. As of December 31, 2017, it had interests in approximately 112 oil and gas fields; proved reserves of approximately 480 million barrels (mmbbl) of oil; and approximately 2,520 billion cubic feet of gas. The company also had a retail distribution network of 1,563 YPF-branded service stations; 21 exploration permits, including 18 onshore and 3 offshore exploration permits, as well as 112 production concessions; and 36 crude oil treatment plants and 10 pumping plants. In addition, it owns three refineries with annual refining capacity of approximately 116 mmbbl; approximately 2,700 kilometers of crude oil pipelines with approximately 640,000 barrels of aggregate daily transportation capacity of refined products; and crude oil tankage of approximately 7 mmbbl, as well as maintains terminal facilities at 5 Argentine ports. Further, the company participates in 3 power generation plants with an aggregate installed capacity of 1,367 megawatts; offers diesel, fertilizers, lubricants, phytosanitaries, ensiling bags, and other products; and supplies fuels, lubricants, coal, asphalts, and paraffin and derivatives. YPF Sociedad Anonima was founded in 1977 and is headquartered in Buenos Aires, Argentina.

ConocoPhillips Company Profile

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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