Royal Dutch Shell (NYSE: RDS.B) and YPF Sociedad Anonima (NYSE:YPF) are both mid-cap energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.
Risk and Volatility
Royal Dutch Shell has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, YPF Sociedad Anonima has a beta of 2.04, indicating that its stock price is 104% more volatile than the S&P 500.
Valuation and Earnings
This table compares Royal Dutch Shell and YPF Sociedad Anonima’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Royal Dutch Shell||$233.59 billion||1.17||$4.58 billion||$2.59||25.56|
|YPF Sociedad Anonima||$14.27 billion||0.61||-$1.91 billion||$0.32||68.85|
Royal Dutch Shell has higher revenue and earnings than YPF Sociedad Anonima. Royal Dutch Shell is trading at a lower price-to-earnings ratio than YPF Sociedad Anonima, indicating that it is currently the more affordable of the two stocks.
Royal Dutch Shell pays an annual dividend of $3.76 per share and has a dividend yield of 5.7%. YPF Sociedad Anonima pays an annual dividend of $0.07 per share and has a dividend yield of 0.3%. Royal Dutch Shell pays out 145.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. YPF Sociedad Anonima pays out 21.9% of its earnings in the form of a dividend.
Insider and Institutional Ownership
5.1% of Royal Dutch Shell shares are owned by institutional investors. Comparatively, 28.9% of YPF Sociedad Anonima shares are owned by institutional investors. 1.0% of Royal Dutch Shell shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Royal Dutch Shell and YPF Sociedad Anonima’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Royal Dutch Shell||3.74%||6.64%||3.13%|
|YPF Sociedad Anonima||0.89%||1.71%||0.49%|
This is a breakdown of current recommendations and price targets for Royal Dutch Shell and YPF Sociedad Anonima, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Royal Dutch Shell||0||1||0||0||2.00|
|YPF Sociedad Anonima||0||0||4||0||3.00|
YPF Sociedad Anonima has a consensus price target of $28.00, indicating a potential upside of 27.10%. Given YPF Sociedad Anonima’s stronger consensus rating and higher possible upside, analysts clearly believe YPF Sociedad Anonima is more favorable than Royal Dutch Shell.
Royal Dutch Shell beats YPF Sociedad Anonima on 9 of the 16 factors compared between the two stocks.
Royal Dutch Shell Company Profile
The Royal Dutch Shell plc explores for crude oil and natural gas around the world, both in conventional fields and from sources, such as tight rock, shale and coal formations. The Company’s segments include Integrated Gas, Upstream, Downstream and Corporate. The Integrated Gas segment is engaged in the liquefaction and transportation of gas and the conversion of natural gas to liquids to provide fuels and other products, as well as projects with an integrated activity, ranging from producing to commercializing gas. The Upstream segment includes the operations of Upstream, which is engaged in the exploration for and extraction of crude oil, natural gas and natural gas liquids, and the marketing and transportation of oil and gas, and Oil Sands, which is engaged in the extraction of bitumen from mined oil sands and conversion into synthetic crude oil. The Downstream segment is engaged in oil products and chemicals manufacturing, and marketing activities.
YPF Sociedad Anonima Company Profile
YPF Sociedad Anonima (YPF) is an energy company. The Company is operating a fully integrated oil and gas chain. The Company operates through the segments, including Exploration and Production, Downstream, and Corporate and Other. The Company’s Exploration and Production segment includes exploration and production activities, natural gas and crude oil purchases, sales of natural gas, and to a lesser extent crude oil, to third parties and intersegment sales of crude oil, natural gas and its byproducts. The Company’s Downstream segment is engaged in the refining, transport, purchase of crude oil and natural gas from third parties and intersegment sales, and marketing of crude oil, natural gas, refined products, petrochemicals, electric power generation and natural gas distribution. The Company’s Corporate and Other segment carries out other activities.
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