ENI (NASDAQ: ISRL) and Isramco (NASDAQ:ISRL) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.

Dividends

ENI pays an annual dividend of $1.35 per share and has a dividend yield of 3.5%. Isramco does not pay a dividend. ENI pays out 89.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of current ratings and price targets for ENI and Isramco, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ENI 2 2 6 0 2.40
Isramco 0 0 0 0 N/A

ENI presently has a consensus price target of $34.24, suggesting a potential downside of 11.13%. Given ENI’s higher possible upside, analysts plainly believe ENI is more favorable than Isramco.

Profitability

This table compares ENI and Isramco’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ENI 6.31% 6.18% 2.58%
Isramco -31.84% -136.35% 13.02%

Insider and Institutional Ownership

1.6% of ENI shares are owned by institutional investors. Comparatively, 5.0% of Isramco shares are owned by institutional investors. 73.3% of Isramco shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

ENI has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Isramco has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ENI $80.18 billion 0.87 $3.81 billion $1.51 25.52
Isramco $65.95 million 4.95 -$24.31 million N/A N/A

ENI has higher revenue and earnings than Isramco.

Summary

ENI beats Isramco on 9 of the 14 factors compared between the two stocks.

ENI Company Profile

Eni S.p.A. engages in the oil and gas, electricity generation and sale, and petrochemicals businesses. The company is involved in the oil and natural gas exploration, and field development and production activities, as well as liquefied natural gas (LNG) operations in 46 countries, including Italy, Libya, Egypt, Norway, the United Kingdom, Angola, Congo, Nigeria, the United States, Kazakhstan, Algeria, Australia, Venezuela, Iraq, Indonesia, Ghana, and Mozambique. It also supplies, trades in, and markets gas and electricity; transports international gas; supplies crude oil; and refines and markets petroleum products at retail and wholesale markets primarily in Italy and rest of Europe. In addition, the company engages in the commodity risk management and asset-backed trading activities; and production of various chemicals, including olefins and aromatics, basic intermediate products, polystyrenes, elastomers, and polyethylene in Italy and Western Europe. Further, it is involved in commodity trading and derivatives. Eni S.p.A. was founded in 1953 and is headquartered in Rome, Italy.

Isramco Company Profile

Isramco, Inc., an independent oil and natural gas company, engages in the exploration, development, and production of oil and natural gas properties located onshore in the United States and offshore Israel. It operates in two segments, Oil and Gas Exploration and Production; and Production Services. The Oil and Gas Exploration and Production segment owns working interests in oil and gas wells in Louisiana, Texas, New Mexico, Oklahoma, Wyoming, Utah, and Colorado; and operates approximately 422 producing wells located primarily in Texas and New Mexico. It also has overriding royalty interests in the Tamar Field located in offshore Israel. This segment sells its oil and natural gas to independent marketers, oil and natural gas companies, and gas pipeline companies. The Production Services segment operates a fleet of production servicing rigs and trucks that provide a range of production services, including completion of newly-drilled wells; maintenance and workover of existing wells; fluid transportation; and related oilfield services, as well as plugging and abandonment of wells to oil and gas exploration and production companies. As of December 31, 2017, the company had estimated total proved oil, natural gas reserves, and natural gas liquids, which include approximately 38,653 thousand barrels (MBbls) of oil equivalent comprising 1,765 MBbls of oil; 216,451 million cubic feet of natural gas; and 813 MBbls of natural gas liquids, as well as 33 production servicing rigs primarily in Texas and New Mexico. Isramco, Inc. was founded in 1982 and is based in Houston, Texas.

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