Neste OYJ (OTCMKTS:NTOIY) and ENEOS (OTCMKTS:JXHLY) Financial Analysis

Neste OYJ (OTCMKTS:NTOIY) and ENEOS (OTCMKTS:JXHLY) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Analyst Recommendations

This is a breakdown of recent recommendations for Neste OYJ and ENEOS, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neste OYJ	0	2	1	4	3.29
ENEOS	0	0	0	1	4.00

Dividends

Neste OYJ pays an annual dividend of $0.03 per share and has a dividend yield of 0.2%. ENEOS pays an annual dividend of C$0.13 per share and has a dividend yield of 0.8%. Neste OYJ pays out 5.6% of its earnings in the form of a dividend. ENEOS pays out 0.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. ENEOS is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Neste OYJ and ENEOS”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neste OYJ	$21.51 billion	1.21	$162.92 million	$0.54	31.48
ENEOS	N/A	N/A	N/A	C$28.15	0.61

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

Profitability

This table compares Neste OYJ and ENEOS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neste OYJ	3.78%	10.12%	4.71%
ENEOS	N/A	N/A	N/A

Summary

Neste OYJ beats ENEOS on 7 of the 11 factors compared between the two stocks.

About Neste OYJ

Neste Oyj provides renewable diesel and sustainable aviation fuel in Finland, and other Nordic countries, Baltic Rim, other European countries, North and South America, and internationally. The company operates in four segments: Renewable Products, Oil Products, Marketing & Services, and Others. The Renewable Products segment produces, markets, and sells renewable diesel, sustainable aviation fuel, renewable solvents, and feedstock for bioplastics to wholesale markets. The Oil Products segment produces, markets, and sells diesel, gasoline, aviation and marine fuels, light and heavy fuel oils, and gasoline components, as well as special fuels, such as small-engine gasoline, solvents, liquid gases, and bitumen. This segment serves retailers and distributors, oil majors and trading companies, petrochemicals companies, and companies marketing lubricants and solvents, as well as road transportation, non-road uses, aviation and marine sectors. The Marketing & Services segment markets and sells cleaner fuels and oil products, and associated services to private motorists, transport companies, customers in aviation, shipping, industrial and agricultural sectors, municipalities, farmers, and heating oil customers through a network of service stations, as well as direct sales and distributors. The Others segment offers engineering solutions. The company was formerly known as Neste Oil Oyj and changed its name to Neste Oyj in June 2015. Neste Oyj was founded in 1948 and is headquartered in Espoo, Finland.

About ENEOS

ENEOS Holdings, Inc., through its subsidiaries, operates in the energy, oil and natural gas exploration and production, and metals businesses in Japan, China, Asia, and internationally. It manufactures and sells petroleum products, including gasoline, kerosene, lubricants, etc.; imports and sells gas; and supplies electricity and hydrogen, as well as provides petrochemicals; and offers crude oil, natural gas, and copper concentrates. The company offers non-ferrous metal products, including electrolytic coppers, functional materials, and thin-film materials. In addition, it develops and explores non-ferrous metal resources and products; and produces and sells titanium and electric wires. Further, the company offers copper foils, precision rolled, and precision-fabricated products. Additionally, it engages in the asphalt paving, civil engineering, construction, land transportation; rail transportation of oil products; and real estate leasing, sale and purchase, and management. Furthermore, it also provides nonlife insurance; and temporary staffing, recruitment, training, and office support services. ENEOS Holdings, Inc. was founded in 1888 and is headquartered in Tokyo, Japan.