Critical Survey: CNOOC (NYSE:CEO) versus Sandridge Mississippian Trust I (NYSE:SDT)

CNOOC (NYSE:CEO) and Sandridge Mississippian Trust I (NYSE:SDT) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.

Profitability

This table compares CNOOC and Sandridge Mississippian Trust I’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CNOOC N/A N/A N/A
Sandridge Mississippian Trust I 61.69% 18.22% 18.22%

Dividends

CNOOC pays an annual dividend of $7.53 per share and has a dividend yield of 4.8%. Sandridge Mississippian Trust I pays an annual dividend of $0.10 per share and has a dividend yield of 34.5%. CNOOC pays out 44.1% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings for CNOOC and Sandridge Mississippian Trust I, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CNOOC 0 2 4 0 2.67
Sandridge Mississippian Trust I 0 0 0 0 N/A

Risk & Volatility

CNOOC has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, Sandridge Mississippian Trust I has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Insider & Institutional Ownership

1.9% of CNOOC shares are owned by institutional investors. Comparatively, 0.9% of Sandridge Mississippian Trust I shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares CNOOC and Sandridge Mississippian Trust I’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CNOOC $26.88 billion 2.60 $7.66 billion $17.06 9.19
Sandridge Mississippian Trust I $8.15 million 1.00 $5.16 million N/A N/A

CNOOC has higher revenue and earnings than Sandridge Mississippian Trust I.

Summary

CNOOC beats Sandridge Mississippian Trust I on 7 of the 12 factors compared between the two stocks.

CNOOC Company Profile

CNOOC Limited, an investment holding company, explores for, develops, produces, and sells crude oil, natural gas, and other petroleum products. It operates through Exploration and Production, and Trading Business segments. The company produces offshore crude oil and natural gas primarily in Bohai, Western South China Sea, Eastern South China Sea, and East China Sea in offshore China. It also holds interests in various oil and gas assets in Asia, Africa, North America, South America, Oceania, and Europe. As of December 31, 2017, the company had net proved reserves of approximately 4.84 billion barrels-of-oil equivalent. In addition, it is involved in the issuance of bonds. The company was incorporated in 1999 and is based in Central, Hong Kong. CNOOC Limited is a subsidiary of China National Offshore Oil Corporation.

Sandridge Mississippian Trust I Company Profile

SandRidge Mississippian Trust I, a statutory trust, holds royalty interests in specified oil and natural gas properties located in the Mississippian formation in Alfalfa, Garfield, Grant, and Woods counties in Oklahoma. As of December 31, 2017, the company's properties comprised royalty interests in the initial wells; and 121 additional wells that were drilled and perforated by the company. SandRidge Mississippian Trust I was founded in 2010 and is based in Austin, Texas.

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