Analyzing Statoil (STO) and Trecora Resources (TREC)
Statoil (NYSE: TREC) and Trecora Resources (NYSE:TREC) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.
Insider & Institutional Ownership
5.0% of Statoil shares are owned by institutional investors. Comparatively, 48.2% of Trecora Resources shares are owned by institutional investors. 6.4% of Trecora Resources shares are owned by company 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.
Statoil has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Trecora Resources has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500.
Valuation and Earnings
This table compares Statoil and Trecora Resources’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Statoil||$61.19 billion||1.47||$4.59 billion||$1.38||19.67|
|Trecora Resources||$245.14 million||1.38||$18.00 million||$0.44||31.36|
Statoil has higher revenue and earnings than Trecora Resources. Statoil is trading at a lower price-to-earnings ratio than Trecora Resources, indicating that it is currently the more affordable of the two stocks.
Statoil pays an annual dividend of $0.32 per share and has a dividend yield of 1.2%. Trecora Resources does not pay a dividend. Statoil pays out 23.2% of its earnings in the form of a dividend. Statoil has raised its dividend for 5 consecutive years.
This table compares Statoil and Trecora Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for Statoil and Trecora Resources, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Statoil presently has a consensus price target of $21.50, indicating a potential downside of 20.78%. Trecora Resources has a consensus price target of $16.00, indicating a potential upside of 15.94%. Given Trecora Resources’ stronger consensus rating and higher possible upside, analysts clearly believe Trecora Resources is more favorable than Statoil.
Statoil beats Trecora Resources on 9 of the 17 factors compared between the two stocks.
Statoil Company Profile
Statoil ASA, an energy company, explores for, produces, transports, refines, and markets petroleum and petroleum-derived products, and other forms of energy in Norway and internationally. The company operates through Development & Production Norway; Development & Production USA; Development & Production International; Marketing, Midstream & Processing; New Energy Solutions; Technology, Projects & Drilling; Exploration; and Global Strategy & Business Development segments. It also transports, processes, manufactures, markets, and trades oil and gas commodities, such as crude, condensate, gas liquids, products, natural gas, and liquefied natural gas; markets and trades electricity and emission rights; and operates refineries, processing and power plants, and terminals. In addition, the company develops wind, and carbon capture and storage projects, as well as offers other renewable energy and low-carbon energy solutions. As of December 31, 2017, it had proved oil and gas reserves of 5,367 million barrels of oil equivalent. The company was formerly known as StatoilHydro ASA and changed its name to Statoil ASA in November 2009. Statoil ASA was founded in 1972 and is headquartered in Stavanger, Norway.
Trecora Resources Company Profile
Trecora Resources manufactures and sells various specialty petrochemical products and synthetic waxes in the United States. The company operates in two segments, Petrochemical and Specialty Waxes. The Petrochemical segment offers hydrocarbons and other petroleum based products, including isopentane, normal pentane, isohexane, and hexane for use in the production of polyethylene, packaging, polypropylene, expandable polystyrene, poly-iso/urethane foams, and crude oil from the Canadian tar sands, as well as in the catalyst support industry. It also owns and operates pipelines. The Specialty Waxes segment provides specialty polyethylene for use in the paints and inks, adhesives, coatings, and PVC lubricants markets; and specialized synthetic poly alpha olefin waxes for use as toner in printers, as well as additives for candles. The company also provides custom processing services; and produces copper and zinc concentrates, and silver and gold doré. Trecora Resources was formerly known as Arabian American Development Company and changed its name to Trecora Resources in June 2014. Trecora Resources was founded in 1967 and is based in Sugar Land, Texas.
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