Neste OYJ (NTOIY) versus The Competition Critical Analysis

Neste OYJ (OTCMKTS:NTOIY) is one of 1,051 publicly-traded companies in the “Oil, Gas & Consumable Fuels” industry, but how does it weigh in compared to its competitors? We will compare Neste OYJ to similar companies based on the strength of its analyst recommendations, risk, dividends, valuation, profitability, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Neste OYJ and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neste OYJ	0	3	1	3	3.00
Neste OYJ Competitors	5812	26416	39935	2264	2.52

As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 30.96%. Given Neste OYJ’s competitors higher possible upside, analysts plainly believe Neste OYJ has less favorable growth aspects than its competitors.

Dividends

Neste OYJ pays an annual dividend of $0.03 per share and has a dividend yield of 0.2%. Neste OYJ pays out 2.6% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 12.8% and pay out -114.4% of their earnings in the form of a dividend. Neste OYJ lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings and Valuation

This table compares Neste OYJ and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Neste OYJ	$21.51 billion	$162.92 million	16.70
Neste OYJ Competitors	$10.69 billion	$5.51 billion	0.36

Neste OYJ has higher revenue, but lower earnings than its competitors. Neste OYJ is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Neste OYJ and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neste OYJ	7.35%	21.16%	9.86%
Neste OYJ Competitors	-470.31%	9.91%	5.94%

Institutional & Insider Ownership

30.6% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by institutional investors. 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by 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.

Neste OYJ Company Profile

Neste Oyj provides renewable diesel and sustainable aviation fuel in Finland, and other Nordic countries, Baltic Rim, other European countries, North and South America, and internationally. The company operates in four segments: Renewable Products, Oil Products, Marketing & Services, and Others. The Renewable Products segment produces, markets, and sells renewable diesel, sustainable aviation fuel, renewable solvents, and feedstock for bioplastics to wholesale markets. The Oil Products segment produces, markets, and sells diesel, gasoline, aviation and marine fuels, light and heavy fuel oils, and gasoline components, as well as special fuels, such as small-engine gasoline, solvents, liquid gases, and bitumen. This segment serves retailers and distributors, oil majors and trading companies, petrochemicals companies, and companies marketing lubricants and solvents, as well as road transportation, non-road uses, aviation and marine sectors. The Marketing & Services segment markets and sells cleaner fuels and oil products, and associated services to private motorists, transport companies, customers in aviation, shipping, industrial and agricultural sectors, municipalities, farmers, and heating oil customers through a network of service stations, as well as direct sales and distributors. The Others segment offers engineering solutions. The company was formerly known as Neste Oil Oyj and changed its name to Neste Oyj in June 2015. Neste Oyj was founded in 1948 and is headquartered in Espoo, Finland.