Analyzing BP p.l.c. (BP) & Its Competitors

BP p.l.c. (NYSE: BP) is one of 38 public companies in the “Oil & Gas Refining and Marketing” industry, but how does it weigh in compared to its rivals? We will compare BP p.l.c. to similar businesses based on the strength of its profitability, valuation, institutional ownership, earnings, dividends, risk and analyst recommendations.

Earnings and Valuation

This table compares BP p.l.c. and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
BP p.l.c. $209.85 billion $19.97 billion 34.00
BP p.l.c. Competitors $45.68 billion $4.44 billion 23.00

BP p.l.c. has higher revenue and earnings than its rivals. BP p.l.c. is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares BP p.l.c. and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BP p.l.c. 1.74% 3.64% 1.34%
BP p.l.c. Competitors -1.52% 2.05% 1.32%

Insider and Institutional Ownership

10.1% of BP p.l.c. shares are held by institutional investors. Comparatively, 47.2% of shares of all “Oil & Gas Refining and Marketing” companies are held by institutional investors. 1.0% of BP p.l.c. shares are held by company insiders. Comparatively, 11.7% of shares of all “Oil & Gas Refining and Marketing” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

BP p.l.c. pays an annual dividend of $2.38 per share and has a dividend yield of 6.1%. BP p.l.c. pays out 207.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & Gas Refining and Marketing” companies pay a dividend yield of 5.1% and pay out 864.8% of their earnings in the form of a dividend. BP p.l.c. is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and price targets for BP p.l.c. and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BP p.l.c. 2 6 11 0 2.47
BP p.l.c. Competitors 362 1712 2129 109 2.46

BP p.l.c. currently has a consensus target price of $36.58, indicating a potential downside of 6.46%. As a group, “Oil & Gas Refining and Marketing” companies have a potential upside of 13.50%. Given BP p.l.c.’s rivals higher probable upside, analysts clearly believe BP p.l.c. has less favorable growth aspects than its rivals.

Volatility and Risk

BP p.l.c. has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, BP p.l.c.’s rivals have a beta of 1.30, meaning that their average stock price is 30% more volatile than the S&P 500.

Summary

BP p.l.c. beats its rivals on 10 of the 15 factors compared.

BP p.l.c. Company Profile

BP p.l.c. is an integrated oil and gas company. The Company owns an interest in OJSC Oil Company Rosneft (Rosneft), an oil and gas company. The Company’s segments include Upstream, Downstream, Rosneft, and Other businesses and corporate. The Upstream segment is engaged in oil and natural gas exploration, field development and production, as well as midstream transportation, storage and processing. The Downstream segment has global manufacturing and marketing operations. The Rosneft segment has a resource base of hydrocarbons onshore and offshore. The Other businesses and corporate segment comprises the biofuels and wind businesses, shipping and treasury functions, and corporate activities around the world. The Company provides its customers with fuel for transportation, energy for heat and light, lubricants to keep engines moving and the petrochemicals products used to make everyday items as diverse as paints, clothes and packaging.

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