Financial Contrast: TotalEnergies (NYSE:TTE) versus Galp Energia SGPS (OTCMKTS:GLPEY)

TotalEnergies (NYSE:TTE) and Galp Energia SGPS (OTCMKTS:GLPEY) are both large-cap energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and target prices for TotalEnergies and Galp Energia SGPS, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TotalEnergies	0	10	4	1	2.40
Galp Energia SGPS	0	3	1	2	2.83

TotalEnergies currently has a consensus price target of $66.96, indicating a potential upside of 2.35%. Given TotalEnergies’ higher possible upside, equities analysts plainly believe TotalEnergies is more favorable than Galp Energia SGPS.

Valuation and Earnings

This table compares TotalEnergies and Galp Energia SGPS”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TotalEnergies	$214.55 billion	0.73	$15.76 billion	$6.19	10.57
Galp Energia SGPS	$22.54 billion	0.51	$1.13 billion	$0.72	11.56

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

Profitability

This table compares TotalEnergies and Galp Energia SGPS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TotalEnergies	6.98%	13.54%	5.56%
Galp Energia SGPS	4.90%	18.21%	6.13%

Insider and Institutional Ownership

16.5% of TotalEnergies shares are held by institutional investors. 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.

Dividends

TotalEnergies pays an annual dividend of $2.94 per share and has a dividend yield of 4.5%. Galp Energia SGPS pays an annual dividend of $0.16 per share and has a dividend yield of 1.9%. TotalEnergies pays out 47.5% of its earnings in the form of a dividend. Galp Energia SGPS pays out 22.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Risk and Volatility

TotalEnergies has a beta of 0.22, indicating that its share price is 78% less volatile than the S&P 500. Comparatively, Galp Energia SGPS has a beta of 0.04, indicating that its share price is 96% less volatile than the S&P 500.

Summary

TotalEnergies beats Galp Energia SGPS on 10 of the 16 factors compared between the two stocks.

About TotalEnergies

TotalEnergies SE, a multi-energy company, produces and markets oil and biofuels, natural gas, green gases, renewables, and electricity in France, rest of Europe, North America, Africa, and internationally. It operates through five segments: Exploration & Production, Integrated LNG, Integrated Power, Refining & Chemicals, and Marketing & Services. The Exploration & Production segment is involved in the exploration and production of oil and natural gas. The Integrated LNG segment comprises the integrated gas chain, including upstream and midstream liquified natural gas (LNG) activities, as well as biogas, hydrogen, and gas trading activities. The Integrated Power segment includes generation, storage, electricity trading, and B2B-B2C distribution of gas and electricity. The Refining & Chemicals segment consists of refining, petrochemicals, and specialty chemicals. This segment also includes oil supply, trading, and marine shipping activities. The Marketing & Services segment supplies and markets petroleum products. The company was formerly known as TOTAL SE and changed its name to TotalEnergies SE in June 2021. TotalEnergies SE was founded in 1924 and is headquartered in Courbevoie, France.

About Galp Energia SGPS

Galp Energia, SGPS, S.A. operates as an integrated energy operator in Portugal and internationally. The company operates through four segments: Upstream, Industrial & Midstream, Commercial, and Renewables and New Business. The Upstream segment engages in the exploration, development, and production of hydrocarbons primarily in Brazil, Mozambique, Namibia, and Angola. The Industrial & Midstream segment owns refineries in Portugal, as well as is involved in activities related to energy management of oil products, gas, and electricity. This segment provides storage and transportation infrastructure for oil and gas products, as well as engages in the sale of electricity to the grid in Portugal and Spain. The Commercial segment is involved in the areas of retail to final business-to-business and business to consumer customers of oil, gas, and electricity. The Renewables and New Business segment is involved in the development of solar and wind power generation projects in Portugal and Spain. In addition, it produces lithium-ion batteries, hydrogen, and biofuels; and operates service stations. Further, the company engages in the reinsurance business. The company was formerly known as Galp Petróleos e Gás de Portugal, SGPS, S.A. and changed its name to Galp Energia, SGPS, S.A. in September 2000. Galp Energia, SGPS, S.A. was incorporated in 1999 and is headquartered in Lisbon, Portugal.