Trecora Resources (NYSE:TREC) and Suncor Energy (NYSE:SU) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Analyst Recommendations

This is a summary of recent ratings for Trecora Resources and Suncor Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trecora Resources 0 0 1 0 3.00
Suncor Energy 0 1 12 0 2.92

Trecora Resources presently has a consensus target price of $16.00, suggesting a potential upside of 37.22%. Suncor Energy has a consensus target price of $50.33, suggesting a potential upside of 45.89%. Given Suncor Energy’s higher possible upside, analysts plainly believe Suncor Energy is more favorable than Trecora Resources.

Insider & Institutional Ownership

48.5% of Trecora Resources shares are owned by institutional investors. Comparatively, 65.6% of Suncor Energy shares are owned by institutional investors. 6.4% of Trecora Resources shares are owned by company insiders. Comparatively, 1.0% of Suncor Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Trecora Resources 7.58% 4.84% 2.73%
Suncor Energy 12.25% 9.61% 4.84%

Volatility and Risk

Trecora Resources has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Suncor Energy has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Dividends

Suncor Energy pays an annual dividend of $1.10 per share and has a dividend yield of 3.2%. Trecora Resources does not pay a dividend. Suncor Energy pays out 72.8% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Trecora Resources and Suncor Energy’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trecora Resources $245.14 million 1.16 $18.00 million $0.44 26.48
Suncor Energy $25.34 billion 2.20 $3.44 billion $1.51 22.81

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

Summary

Suncor Energy beats Trecora Resources on 11 of the 16 factors compared between the two stocks.

About Trecora Resources

Trecora Resources manufactures and sells various specialty petrochemical products and synthetic waxes in the United States. The company operates in two segments, Petrochemical and Specialty Waxes. The Petrochemical segment offers hydrocarbons and other petroleum based products, including isopentane, normal pentane, isohexane, and hexane for use in the production of polyethylene, packaging, polypropylene, expandable polystyrene, poly-iso/urethane foams, and crude oil from the Canadian tar sands, as well as in the catalyst support industry. It also owns and operates pipelines. The Specialty Waxes segment provides specialty polyethylene for use in the paints and inks, adhesives, coatings, and PVC lubricants markets; and specialized synthetic poly alpha olefin waxes for use as toner in printers, as well as additives for candles. The company also provides custom processing services; and produces copper and zinc concentrates, and silver and gold doré. Trecora Resources was formerly known as Arabian American Development Company and changed its name to Trecora Resources in June 2014. Trecora Resources was founded in 1967 and is based in Sugar Land, Texas.

About Suncor Energy

Suncor Energy Inc. operates as an integrated energy company. The company primarily focuses on developing petroleum resource basins in Canada's Athabasca oil sands; explores, acquires, develops, produces, and markets crude oil and natural gas in Canada and internationally; transports and refines crude oil; markets petroleum and petrochemical products primarily in Canada. It operates in Oil Sands; Exploration and Production; Refining and Marketing; and Corporate, Energy Trading and Eliminations segments. The Oil Sands segment recovers bitumen from mining and in situ operations, and upgrades it into refinery feedstock and diesel fuel, or blends the bitumen with diluent for direct sale to market. The Exploration and Production segment is involved in offshore operations off the east coast of Canada and in the North Sea; and operating onshore assets in North America, Libya, and Syria. The Refining and Marketing segment refines crude oil and intermediate feedstock into petroleum and petrochemical products; and markets refined petroleum products to retail, commercial, and industrial customers through its dealers and other retail stations. The Corporate, Energy Trading and Eliminations segment owns interest in four wind facilities in Ontario and Western Canada, including Adelaide, Chin Chute, Magrath, and Sunbridge. This segment also engages in marketing, supply, and trading crude oil, natural gas, power, and byproducts. 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 1953 and is headquartered in Calgary, Canada.

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