QEP Resources (NYSE: QEP) and Statoil ASA (NYSE:STO) are both mid-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitabiliy, dividends, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and price targets for QEP Resources and Statoil ASA, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QEP Resources 0 5 9 1 2.73
Statoil ASA 4 3 7 0 2.21

QEP Resources presently has a consensus price target of $21.58, suggesting a potential upside of 138.23%. Statoil ASA has a consensus price target of $17.88, suggesting a potential upside of 4.20%. Given QEP Resources’ stronger consensus rating and higher possible upside, equities research analysts clearly believe QEP Resources is more favorable than Statoil ASA.

Volatility and Risk

QEP Resources has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500. Comparatively, Statoil ASA has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Valuation & Earnings

This table compares QEP Resources and Statoil ASA’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
QEP Resources $1.54 billion 1.41 $483.20 million ($1.35) -6.71
Statoil ASA $51.07 billion 1.09 $15.78 billion ($0.78) -22.00

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

Dividends

Statoil ASA pays an annual dividend of $1.08 per share and has a dividend yield of 6.3%. QEP Resources does not pay a dividend. Statoil ASA pays out -138.5% of its earnings in the form of a dividend. QEP Resources has increased its dividend for 4 consecutive years.

Profitability

This table compares QEP Resources and Statoil ASA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QEP Resources -19.81% -4.78% -2.35%
Statoil ASA -4.81% 2.06% 0.72%

Institutional and Insider Ownership

92.8% of QEP Resources shares are owned by institutional investors. Comparatively, 5.0% of Statoil ASA shares are owned by institutional investors. 1.4% of QEP Resources shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

QEP Resources beats Statoil ASA on 9 of the 17 factors compared between the two stocks.

QEP Resources Company Profile

QEP Resources, Inc. is an independent crude oil and natural gas exploration and production company. The Company focuses on two regions of the United States: the Northern Region (primarily in North Dakota, Wyoming and Utah) and the Southern Region (primarily in Texas and Louisiana). The Company conducts exploration and production activities in North America’s hydrocarbon resource plays. The Company has an inventory of developed and undeveloped drilling locations in the Permian Basin in western Texas, the Williston Basin in North Dakota, Haynesville/Cotton Valley in northwestern Louisiana, the Pinedale Anticline (Pinedale) in western Wyoming, the Uinta Basin in eastern Utah and other properties in Wyoming, Utah and Colorado. It sells gas volumes to wholesale marketers, industrial users, local distribution companies and utilities. It sells oil and natural gas liquid (NGL) volumes to refiners, marketers and other companies.

Statoil ASA Company Profile

Statoil ASA (Statoil) is an energy company. The Company is engaged in oil and gas exploration and production activities. The Company’s segments include Development and Production Norway (DPN), Development and Production International (DPI), Marketing, Midstream and Processing (MMP) and Other. DPN segment manages the Company’s upstream activities on the Norwegian continental shelf (NCS) and explores for and extracts crude oil, natural gas and natural gas liquids. DPI segment manages the Company’s upstream activities that are not included in the DPN and Development and Production USA (DPUSA) business areas. MMP segment manages its marketing and trading activities related to oil products and natural gas, transportation, processing and manufacturing, and the development of oil and gas. Other segment includes activities in New Energy Solutions (NES), Technology, Projects and Drilling (TPD), Global Strategy and Business Development (GSB), and Corporate staffs and support functions.

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