Chevron Corporation (NYSE: CVX) and SINOPEC Shangai Petrochemical (NYSE:SHI) are both mid-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.
Volatility & Risk
Chevron Corporation has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, SINOPEC Shangai Petrochemical has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.
Insider & Institutional Ownership
62.8% of Chevron Corporation shares are held by institutional investors. Comparatively, 1.1% of SINOPEC Shangai Petrochemical shares are held by institutional investors. 0.4% of Chevron Corporation shares are held by insiders. Comparatively, 1.0% of SINOPEC Shangai Petrochemical shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Chevron Corporation and SINOPEC Shangai Petrochemical’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Chevron Corporation||$116.78 billion||1.81||$19.04 billion||$3.08||36.30|
|SINOPEC Shangai Petrochemical||$12.58 billion||0.53||$1.11 billion||$9.28||6.58|
Chevron Corporation has higher revenue and earnings than SINOPEC Shangai Petrochemical. SINOPEC Shangai Petrochemical is trading at a lower price-to-earnings ratio than Chevron Corporation, indicating that it is currently the more affordable of the two stocks.
Chevron Corporation pays an annual dividend of $4.32 per share and has a dividend yield of 3.9%. SINOPEC Shangai Petrochemical pays an annual dividend of $3.26 per share and has a dividend yield of 5.3%. Chevron Corporation pays out 140.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SINOPEC Shangai Petrochemical pays out 35.1% of its earnings in the form of a dividend. SINOPEC Shangai Petrochemical has increased its dividend for 31 consecutive years. SINOPEC Shangai Petrochemical is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Chevron Corporation and SINOPEC Shangai Petrochemical’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SINOPEC Shangai Petrochemical||8.79%||27.54%||20.37%|
This is a breakdown of current recommendations and price targets for Chevron Corporation and SINOPEC Shangai Petrochemical, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SINOPEC Shangai Petrochemical||1||2||0||0||1.67|
Chevron Corporation presently has a consensus price target of $116.94, indicating a potential upside of 4.60%. Given Chevron Corporation’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Chevron Corporation is more favorable than SINOPEC Shangai Petrochemical.
Chevron Corporation beats SINOPEC Shangai Petrochemical on 9 of the 17 factors compared between the two stocks.
Chevron Corporation Company Profile
Chevron Corporation (Chevron) manages its investments in subsidiaries and affiliates, and provides administrative, financial, management and technology support to the United States and international subsidiaries that engage in integrated energy and chemicals operations. The Company operates through two business segments: Upstream and Downstream. Upstream operations consist primarily of exploring for, developing and producing crude oil and natural gas; liquefaction, transportation and regasification associated with liquefied natural gas; transporting crude oil by international oil export pipelines; processing, transporting, storage and marketing of natural gas, and a gas-to-liquids plant. Downstream operations consist primarily of refining of crude oil into petroleum products; marketing of crude oil and refined products; transporting of crude oil and refined products, and manufacturing and marketing of commodity petrochemicals.
SINOPEC Shangai Petrochemical Company Profile
Sinopec Shanghai Petrochemical Company Limited (Shanghai Petrochemical) is a petrochemical company. The Company and its subsidiaries are principally engaged in processing crude oil into synthetic fibers, resins and plastics, intermediate petrochemicals and petroleum products. The Company operates in five operating segments. The synthetic fibres segment produces polyester and acrylic fibers, which are used in the textile and apparel industries. The resins and plastics segment produces polyester chips, polyethylene resins and films, polypropylene resins and polyvinyl alcohol (PVA) granules. The intermediate petrochemicals segment produces p-xylene, benzene and ethylene oxide. The petroleum products segment is equipped with crude oil distillation facilities used to produce vacuum and atmospheric gas oils used as feedstock of the Company’s downstream processing facilities. The trading of petrochemical products segment is engaged in importing and exporting of petrochemical products.
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