Head-To-Head Analysis: Teekay (NYSE:TK) and BP (NYSE:BP)

Teekay (NYSE:TK) and BP (NYSE:BP) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.

Institutional and Insider Ownership

46.7% of Teekay shares are owned by institutional investors. Comparatively, 11.0% of BP shares are owned by institutional investors. 2.4% of Teekay shares are owned by insiders. Comparatively, 1.0% of BP shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Teekay and BP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Teekay	10.96%	5.67%	5.08%
BP	0.29%	9.08%	2.57%

Volatility and Risk

Teekay has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500. Comparatively, BP has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.

Valuation & Earnings

This table compares Teekay and BP”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teekay	$1.22 billion	0.65	$133.77 million	$1.41	6.16
BP	$194.63 billion	0.48	$381.00 million	$0.21	167.61

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

Analyst Ratings

This is a breakdown of recent ratings for Teekay and BP, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teekay	0	0	0	0	0.00
BP	1	8	5	3	2.59

BP has a consensus price target of $41.77, suggesting a potential upside of 18.68%. Given BP’s stronger consensus rating and higher possible upside, analysts plainly believe BP is more favorable than Teekay.

Summary

BP beats Teekay on 9 of the 15 factors compared between the two stocks.

About Teekay

Teekay Corporation engages in the international crude oil and other marine transportation services worldwide. The company owns and operates crude oil and refined product tankers. It also provides ship-to-ship support services; tanker commercial management operation services; and operational and maintenance marine services. As of March 1, 2024, the company operated a fleet of approximately 53 owned and chartered-in vessels. It serves energy and utility companies, major oil traders, large oil consumers and petroleum product producers, government agencies, and various other entities that depend upon marine transportation. Teekay Corporation was founded in 1973 and is headquartered in Hamilton, Bermuda.

About BP

BP p.l.c. provides carbon products and services. The company operates through Gas & Low Carbon Energy, Oil Production & Operations, and Customers & Products segments. It engages in the production of natural gas, and integrated gas and power; trading of gas; operation of onshore and offshore wind power, as well as hydrogen and carbon capture and storage facilities; trading and marketing of renewable and non-renewable power; and production of crude oil. In addition, the company involved in convenience and retail fuel, EV charging, Castrol lubricant, aviation, B2B, and midstream businesses; refining and oil trading; and bioenergy business. The company was founded in 1908 and is headquartered in London, the United Kingdom.