Tesoro Corporation (NYSE: ANDV) and Sasol (NYSE:SSL) are both large-cap oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.
Institutional & Insider Ownership
79.7% of Tesoro Corporation shares are owned by institutional investors. Comparatively, 1.9% of Sasol shares are owned by institutional investors. 0.9% of Tesoro Corporation shares are owned by company insiders. Comparatively, 1.0% of Sasol shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This is a summary of recent recommendations and price targets for Tesoro Corporation and Sasol, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Tesoro Corporation presently has a consensus target price of $116.76, suggesting a potential upside of 10.85%. Given Tesoro Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Tesoro Corporation is more favorable than Sasol.
Volatility and Risk
Tesoro Corporation has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500. Comparatively, Sasol has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.
Valuation and Earnings
This table compares Tesoro Corporation and Sasol’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Tesoro Corporation||$24.58 billion||0.67||$734.00 million||$4.93||21.37|
|Sasol||$12.68 billion||1.57||$1.50 billion||N/A||N/A|
Sasol has higher revenue, but lower earnings than Tesoro Corporation.
This table compares Tesoro Corporation and Sasol’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Tesoro Corporation pays an annual dividend of $2.36 per share and has a dividend yield of 2.2%. Sasol pays an annual dividend of $0.74 per share and has a dividend yield of 2.4%. Tesoro Corporation pays out 47.9% of its earnings in the form of a dividend.
Tesoro Corporation beats Sasol on 9 of the 14 factors compared between the two stocks.
Tesoro Corporation Company Profile
Andeavor, formerly Tesoro Corporation, is an independent petroleum refining, logistics and marketing company. he Company operates through three segments. The Refining operating segment refines crude oil and other feedstocks into transportation fuels, such as gasoline and gasoline blendstocks, jet fuel and diesel fuel, as well as other products, including heavy fuel oils, liquefied petroleum gas and petroleum coke for sale in bulk markets to a range of customers within its markets. The TLLP segment comprises Tesoro Logistics LP’s (TLLP) assets and operations, and includes certain crude oil and natural gas gathering assets, natural gas and natural gas liquids (NGLs) processing assets, and crude oil and refined products terminaling, and transportation. The marketing segment sells transportation fuels through branded and unbranded channels.
Sasol Company Profile
Sasol Limited is an international integrated chemicals and energy company. The Company develops and commercializes technologies, and builds and operates facilities to produce a range of product streams, including liquid fuels, chemicals and low-carbon electricity. The Company’s operating business units include Mining and, Exploration and Production International. Its Strategic Business Units are energy, base chemicals, performance chemicals and group functions. The Company’s regional operating hubs include Southern Africa Operations and International Operations. The Company operates approximately six coal mines that supply feedstock for its Secunda (Sasol Synfuels) and Sasolburg (Sasolburg Operations) complexes in South Africa. It offers market ready fuels and oils, such as bitumen; industrial heating fuels; naphtha and illuminating paraffin transport fuels; automotive lubricants; industrial lubricants; greases; cleansers and degreasers; automotive fuels, and burner fuels.
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