Equinor ASA (NYSE: EQNR) is one of 26 publicly-traded companies in the “Petroleum refining” industry, but how does it contrast to its peers? We will compare Equinor ASA to similar businesses based on the strength of its profitability, institutional ownership, analyst recommendations, valuation, risk, dividends and earnings.

Risk and Volatility

Equinor ASA has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Equinor ASA’s peers have a beta of 1.05, meaning that their average stock price is 5% more volatile than the S&P 500.

Dividends

Equinor ASA pays an annual dividend of $0.67 per share and has a dividend yield of 2.6%. Equinor ASA pays out 48.6% of its earnings in the form of a dividend. As a group, “Petroleum refining” companies pay a dividend yield of 3.5% and pay out 104.0% of their earnings in the form of a dividend.

Institutional and Insider Ownership

4.9% of Equinor ASA shares are owned by institutional investors. Comparatively, 54.0% of shares of all “Petroleum refining” companies are owned by institutional investors. 8.6% of shares of all “Petroleum refining” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Equinor ASA and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Equinor ASA 6.69% 13.09% 4.68%
Equinor ASA Competitors 6.57% 508.88% 343.56%

Earnings and Valuation

This table compares Equinor ASA and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Equinor ASA $61.19 billion $4.59 billion 18.96
Equinor ASA Competitors $73.11 billion $3.06 billion 24.81

Equinor ASA’s peers have higher revenue, but lower earnings than Equinor ASA. Equinor ASA is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Equinor ASA and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Equinor ASA 0 3 1 0 2.25
Equinor ASA Competitors 448 1886 2436 177 2.47

As a group, “Petroleum refining” companies have a potential downside of 1.02%. Given Equinor ASA’s peers stronger consensus rating and higher possible upside, analysts clearly believe Equinor ASA has less favorable growth aspects than its peers.

Summary

Equinor ASA peers beat Equinor ASA on 12 of the 15 factors compared.

About Equinor ASA

Equinor 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 in oil and gas commodities, such as crude and condensate products, gas liquids, natural gas, and liquefied natural gas; markets and trades in 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 Statoil ASA and changed its name to Equinor ASA in May 2018. Equinor ASA was founded in 1972 and is headquartered in Stavanger, Norway.

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