Analyzing Saras (OTCMKTS:SAAFY) & Valvoline (NYSE:VVV)

Saras (OTCMKTS:SAAFY) and Valvoline (NYSE:VVV) are both energy companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Institutional and Insider Ownership

0.0% of Saras shares are owned by institutional investors. Comparatively, 92.0% of Valvoline shares are owned by institutional investors. 1.0% of Valvoline shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Saras and Valvoline, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Saras	0	0	0	0	N/A
Valvoline	0	5	3	0	2.38

Valvoline has a consensus target price of $39.57, suggesting a potential upside of 21.70%. Given Valvoline’s higher probable upside, analysts clearly believe Valvoline is more favorable than Saras.

Profitability

This table compares Saras and Valvoline’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Saras	N/A	N/A	N/A
Valvoline	110.05%	42.99%	6.81%

Valuation and Earnings

This table compares Saras and Valvoline’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Saras	N/A	N/A	N/A	($0.87)	-7.61
Valvoline	$1.39 billion	3.25	$424.30 million	$8.83	3.68

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

Summary

Valvoline beats Saras on 10 of the 10 factors compared between the two stocks.

About Saras

Saras S.p.A. engages in the oil refinery business in Italy and internationally. The company operates through Industrial & Marketing; and Renewables segments. It also sells and distributes oil products, such as diesel, gasoline, diesel fuel for heating, liquefied petroleum gas, virgin naphtha, bunkering, and aviation fuel. In addition, the company generates and sells electricity through an integrated gasification combined cycle plant with a total installed capacity of 575 megawatts; and a wind farm with a total installed capacity of 171 megawatts. Further, it provides consultancy, engineering, and technological development services in the oil refining, petrochemical, chemical, and energy industry sectors. Additionally, the company owns and operates depots located in Arcola and Cartagena. The company was founded in 1962 and is headquartered in Milan, Italy.

About Valvoline

Valvoline Inc. provides automotive services through retail stores in the United States and Canada. It offers cabin air filter, battery replacement, and tire rotation services for various vehicles. As of September 30, 2022, it operated 1,700 system-wide service center stores. The company was founded in 1866 and is headquartered in Lexington, Kentucky.