Equinor ASA (NYSE:EQNR – Get Free Report) and TotalEnergies (NYSE:TTE – Get Free Report) are both large-cap energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.
Analyst Ratings
This is a summary of current ratings and price targets for Equinor ASA and TotalEnergies, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Equinor ASA | 7 | 5 | 4 | 0 | 1.81 |
TotalEnergies | 0 | 6 | 6 | 2 | 2.71 |
Equinor ASA presently has a consensus target price of $22.71, suggesting a potential downside of 10.47%. TotalEnergies has a consensus target price of $64.45, suggesting a potential upside of 7.72%. Given TotalEnergies’ stronger consensus rating and higher possible upside, analysts plainly believe TotalEnergies is more favorable than Equinor ASA.
Insider and Institutional Ownership
Volatility and Risk
Equinor ASA has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, TotalEnergies has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500.
Dividends
Equinor ASA pays an annual dividend of $1.22 per share and has a dividend yield of 4.8%. TotalEnergies pays an annual dividend of $2.98 per share and has a dividend yield of 5.0%. Equinor ASA pays out 40.5% of its earnings in the form of a dividend. TotalEnergies pays out 54.1% 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.
Profitability
This table compares Equinor ASA and TotalEnergies’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Equinor ASA | 7.60% | 16.91% | 5.43% |
TotalEnergies | 6.20% | 13.59% | 5.64% |
Earnings and Valuation
This table compares Equinor ASA and TotalEnergies”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Equinor ASA | $103.77 billion | 0.72 | $8.81 billion | $3.01 | 8.43 |
TotalEnergies | $214.55 billion | 0.67 | $15.76 billion | $5.51 | 10.86 |
TotalEnergies has higher revenue and earnings than Equinor ASA. Equinor ASA is trading at a lower price-to-earnings ratio than TotalEnergies, indicating that it is currently the more affordable of the two stocks.
Summary
TotalEnergies beats Equinor ASA on 12 of the 17 factors compared between the two stocks.
About Equinor ASA
Equinor ASA, an energy company, engages in the exploration, production, transportation, refining, and marketing of petroleum and other forms of energy in Norway and internationally. It operates through Exploration & Production Norway; Exploration & Production International; Exploration & Production USA; Marketing, Midstream & Processing; Renewables; and Other segments. The company 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; trades in power and emissions; operates refineries, terminals and processing, and power plants; and develops low carbon solutions for oil and gas. In addition, it develops carbon capture and storage projects; provides transportation solutions, including pipelines, shipping, trucking, and rail; and develops and explores for renewable energy, such as offshore wind, green hydrogen, and solar power. The company was formerly known as Statoil ASA and changed its name to Equinor ASA in May 2018. Equinor ASA was incorporated in 1972 and is headquartered in Stavanger, Norway.
About TotalEnergies
TotalEnergies SE, a multi-energy company, produces and markets oil and biofuels, natural gas, green gases, renewables, and electricity in France, rest of Europe, North America, Africa, and internationally. It operates through five segments: Exploration & Production, Integrated LNG, Integrated Power, Refining & Chemicals, and Marketing & Services. The Exploration & Production segment is involved in the exploration and production of oil and natural gas. The Integrated LNG segment comprises the integrated gas chain, including upstream and midstream liquified natural gas (LNG) activities, as well as biogas, hydrogen, and gas trading activities. The Integrated Power segment includes generation, storage, electricity trading, and B2B-B2C distribution of gas and electricity. The Refining & Chemicals segment consists of refining, petrochemicals, and specialty chemicals. This segment also includes oil supply, trading, and marine shipping activities. The Marketing & Services segment supplies and markets petroleum products. The company was formerly known as TOTAL SE and changed its name to TotalEnergies SE in June 2021. TotalEnergies SE was founded in 1924 and is headquartered in Courbevoie, France.
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