BP (NYSE: BP) and Clean Energy Fuels (NASDAQ:CLNE) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.
Earnings and Valuation
This table compares BP and Clean Energy Fuels’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BP||$186.61 billion||0.78||$115.00 million||$1.17||37.53|
|Clean Energy Fuels||$402.66 million||0.82||-$12.15 million||($0.37)||-5.89|
BP has higher revenue and earnings than Clean Energy Fuels. Clean Energy Fuels is trading at a lower price-to-earnings ratio than BP, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
BP has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Clean Energy Fuels has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500.
BP pays an annual dividend of $2.38 per share and has a dividend yield of 5.4%. Clean Energy Fuels does not pay a dividend. BP pays out 203.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional and Insider Ownership
9.9% of BP shares are owned by institutional investors. Comparatively, 35.5% of Clean Energy Fuels shares are owned by institutional investors. 1.0% of BP shares are owned by insiders. Comparatively, 26.7% of Clean Energy Fuels 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.
This is a breakdown of current recommendations and price targets for BP and Clean Energy Fuels, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Clean Energy Fuels||0||0||0||0||N/A|
BP presently has a consensus price target of $37.73, suggesting a potential downside of 14.08%. Given BP’s higher probable upside, equities analysts plainly believe BP is more favorable than Clean Energy Fuels.
This table compares BP and Clean Energy Fuels’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Clean Energy Fuels||-15.47%||-10.52%||-6.31%|
BP beats Clean Energy Fuels on 10 of the 15 factors compared between the two stocks.
BP p.l.c. is an integrated oil and gas company. The Company owns an interest in OJSC Oil Company Rosneft (Rosneft), an oil and gas company. The Company’s segments include Upstream, Downstream, Rosneft, and Other businesses and corporate. The Upstream segment is engaged in oil and natural gas exploration, field development and production, as well as midstream transportation, storage and processing. The Downstream segment has global manufacturing and marketing operations. The Rosneft segment has a resource base of hydrocarbons onshore and offshore. The Other businesses and corporate segment comprises the biofuels and wind businesses, shipping and treasury functions, and corporate activities around the world. The Company provides its customers with fuel for transportation, energy for heat and light, lubricants to keep engines moving and the petrochemicals products used to make everyday items as diverse as paints, clothes and packaging.
About Clean Energy Fuels
Clean Energy Fuels Corp. (Clean Energy) is a provider of natural gas as an alternative fuel for vehicle fleets in the United States and Canada. The Company is engaged in supplying compressed natural gas (CNG), liquefied natural gas (LNG) and renewable natural gas (RNG) for light, medium and heavy-duty vehicles, and providing operation and maintenance (O&M) services for natural gas fueling stations. The Company designs, builds, operates and maintains fueling stations; manufactures, sells and services non-lubricated natural gas fueling compressors and other equipment used in CNG stations and LNG stations; offers assessment, design and modification solutions to provide operators with code-compliant service and maintenance facilities for natural gas vehicle fleets, and transports and sells CNG and LNG to industrial and institutional energy users having no direct access to natural gas pipelines, among others.
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