SFL (NYSE:SFL) & Occidental Petroleum (NYSE:OXY) Head to Head Comparison

SFL (NYSE:SFL) and Occidental Petroleum (NYSE:OXY) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.

Dividends

SFL pays an annual dividend of $0.88 per share and has a dividend yield of 7.9%. Occidental Petroleum pays an annual dividend of $1.12 per share and has a dividend yield of 1.9%. SFL pays out 131.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Occidental Petroleum pays out 15.1% of its earnings in the form of a dividend. SFL has increased its dividend for 1 consecutive years and Occidental Petroleum has increased its dividend for 5 consecutive years.

Institutional & Insider Ownership

28.6% of SFL shares are held by institutional investors. Comparatively, 88.7% of Occidental Petroleum shares are held by institutional investors. 0.5% of Occidental Petroleum shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares SFL and Occidental Petroleum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SFL	12.30%	6.10%	1.74%
Occidental Petroleum	32.17%	18.55%	7.38%

Earnings & Valuation

This table compares SFL and Occidental Petroleum”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SFL	$729.11 million	2.20	-$26.43 million	$0.67	16.54
Occidental Petroleum	$24.97 billion	2.34	$2.33 billion	$7.42	7.87

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

Analyst Ratings

This is a summary of recent ratings for SFL and Occidental Petroleum, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SFL	0	1	2	0	2.67
Occidental Petroleum	0	15	12	0	2.44

SFL presently has a consensus target price of $14.00, indicating a potential upside of 26.31%. Occidental Petroleum has a consensus target price of $67.62, indicating a potential upside of 15.81%. Given SFL’s stronger consensus rating and higher probable upside, analysts clearly believe SFL is more favorable than Occidental Petroleum.

Risk and Volatility

SFL has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, Occidental Petroleum has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500.

Summary

Occidental Petroleum beats SFL on 12 of the 17 factors compared between the two stocks.

About SFL

SFL Corporation Ltd. is an international ship-owning and maritime transportation company that acquires and charters vessels and offshore assets. Its fleet has included crude oil and product tankers, dry bulk carriers, container ships, car carriers and drilling units. The company earns revenue primarily by chartering its assets to shipping and energy customers, often under long-term agreements. Its vessels serve global trade routes, transporting commodities, cargo and vehicles between markets around the world.

About Occidental Petroleum

Occidental Petroleum Corporation is an energy and chemicals company headquartered in Houston, Texas. Its oil and gas business explores for and produces crude oil, natural gas liquids and natural gas, with operations in the United States and international markets, including the Middle East and North Africa. Through its OxyChem business, Occidental manufactures and markets basic chemicals and vinyl products used in applications such as water treatment, construction and consumer goods. The company also develops carbon management and lower-carbon technology projects, including carbon capture and storage.