Comparing Anadarko Petroleum (NASDAQ:APC) & World Kinect (NYSE:WKC)

World Kinect (NYSE:WKC) and Anadarko Petroleum (NASDAQ:APC) are both small-cap energy companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Institutional & Insider Ownership

97.1% of World Kinect shares are held by institutional investors. 3.8% of World Kinect shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares World Kinect and Anadarko Petroleum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
World Kinect	-0.43%	11.24%	2.40%
Anadarko Petroleum	N/A	N/A	N/A

Valuation and Earnings

This table compares World Kinect and Anadarko Petroleum”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
World Kinect	$36.92 billion	0.05	-$614.40 million	($3.21)	-11.39
Anadarko Petroleum	$5.58 billion	0.04	$32.73 million	$0.69	23.65

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for World Kinect and Anadarko Petroleum, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
World Kinect	2	1	0	0	1.33
Anadarko Petroleum	1	1	4	1	2.71

World Kinect presently has a consensus target price of $30.00, suggesting a potential downside of 17.94%. Anadarko Petroleum has a consensus target price of $21.80, suggesting a potential upside of 33.58%. Given Anadarko Petroleum’s stronger consensus rating and higher probable upside, analysts plainly believe Anadarko Petroleum is more favorable than World Kinect.

Dividends

World Kinect pays an annual dividend of $0.92 per share and has a dividend yield of 2.5%. Anadarko Petroleum pays an annual dividend of $2.00 per share and has a dividend yield of 12.3%. World Kinect pays out -28.7% of its earnings in the form of a dividend. Anadarko Petroleum pays out 289.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. World Kinect has raised its dividend for 6 consecutive years.

Summary

Anadarko Petroleum beats World Kinect on 9 of the 17 factors compared between the two stocks.

About World Kinect

World Kinect Corporation operates as an energy management company in the United States, the Americas, Europe, the Middle East, Africa, and the Asia Pacific. This segment also offers fuel management, price risk management, ground handling, dispatch services, and trip planning services, such as flight planning and scheduling, weather reports and overflight permits; payment and processing services; and operates a web-based marketplace platform. The Land segment offers fuel, lubricants, heating oil, and related products and services to retail petroleum operators, as well as industrial, commercial, residential and government customers. This segment also provides sustainability solutions, such as renewable fuel products, carbon management, and renewable energy solutions; distributes fuel under long-term contracts to branded and unbranded distributors, convenience stores, and retail fuel outlets operated by third parties; distributes heating oil and unbranded fuel; and transportation logistics. The Marine segment markets fuel, lubricants, and related products and services to international container, dry bulk and tanker fleets, commercial cruise lines, yachts and time charter operators, offshore rig owners and operators, the U.S. and foreign governments, and other fuel suppliers. This segment also offers marine fuel-related services include management services to procurement of fuel, price risk management, cost control, quality control, and claims management services; and engages in the fueling of vessels, and transportation and delivery of fuel and fuel-related products. The company was formerly known as World Fuel Services Corporation and changed its name to World Kinect Corporation in June 2023. World Kinect Corporation was incorporated in 1984 and is headquartered in Miami, Florida.

About Anadarko Petroleum

Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of oil and gas properties. It operates through three segments: Exploration and Production, WES Midstream, and Other Midstream. The company explores for and produces oil, natural gas, and natural gas liquids (NGLs). It is also involved in gathering, processing, treating, and transporting oil, natural-gas, and NGLs production, as well as the gathering and disposal of produced water. The company's oil and natural gas properties are located in the United States onshore and deepwater Gulf of Mexico; and Algeria, Ghana, Mozambique, Colombia, Peru, and other countries. As of December 31, 2018, it had approximately 1.5 billion barrels of oil equivalent of proved reserves. The company was founded in 1959 and is headquartered in The Woodlands, Texas.