Head to Head Analysis: Suncor Energy (NYSE:SU) vs. Noble (OTCMKTS:NEBLQ)

Noble (OTCMKTS:NEBLQ) and Suncor Energy (NYSE:SU) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.

Valuation and Earnings

This table compares Noble and Suncor Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Noble	$1.31 billion	0.01	-$700.59 million	($1.52)	-0.03
Suncor Energy	$35.29 billion	2.19	$4.24 billion	$5.43	12.06

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

Profitability

This table compares Noble and Suncor Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Noble	-126.73%	-11.86%	-4.78%
Suncor Energy	15.62%	20.05%	10.06%

Analyst Ratings

This is a summary of current recommendations and price targets for Noble and Suncor Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Noble	0	0	0	0	0.00
Suncor Energy	0	3	6	1	2.80

Suncor Energy has a consensus target price of $71.67, suggesting a potential upside of 9.46%. Given Suncor Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Suncor Energy is more favorable than Noble.

Insider and Institutional Ownership

42.1% of Noble shares are owned by institutional investors. Comparatively, 67.4% of Suncor Energy shares are owned by institutional investors. 1.1% of Noble shares are owned by insiders. Comparatively, 1.0% of Suncor Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Suncor Energy beats Noble on 13 of the 14 factors compared between the two stocks.

About Noble

Noble Holding Corporation plc operates as an offshore drilling contractor for the oil and gas industry worldwide. It provides contract drilling services using mobile offshore drilling units. As of November 6, 2020, the company operated a fleet of 19 drilling rigs consisted of 7 drillships and semisubmersibles and 12 jackups. The company was formerly known as Noble Corporation plc and changed its name to Noble Holding Corporation plc in November 2020. Noble Holding Corporation plc was founded in 1921 and is headquartered in London, the United Kingdom. On July 31, 2020, Noble Corporation plc, along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.

About Suncor Energy

Suncor Energy Inc. operates as an integrated energy company in Canada, the United States, and internationally. It operates through Oil Sands; Exploration and Production; and Refining and Marketing segments. The Oil Sands segment explores, develops, and produces bitumen, synthetic crude oil, and related products. This segment also engages in oil sands mining. The Exploration and Production segment is involved in offshore operations in the East Coast of Canada; and marketing and risk management of crude oil and natural gas. The Refining and Marketing segment engages in the refining of crude oil products; and distribution, marketing, transportation, and risk management of refined and petrochemical products, and other purchased products through the retail and wholesale networks. This segment is also involved in the trading of crude oil, refined products, natural gas, and power. The company was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in April 1997. Suncor Energy Inc. was founded in 1917 and is headquartered in Calgary, Canada. Suncor Energy Inc.