Anadarko Petroleum (NASDAQ:APC) and Scorpio Tankers (NYSE:STNG) Critical Contrast

Scorpio Tankers (NYSE:STNG) and Anadarko Petroleum (NASDAQ:APC) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.

Valuation & Earnings

This table compares Scorpio Tankers and Anadarko Petroleum”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scorpio Tankers	$938.22 million	4.50	$344.29 million	$16.01	5.23
Anadarko Petroleum	$5.58 billion	0.03	$32.73 million	$0.69	21.54

Scorpio Tankers has higher earnings, but lower revenue than Anadarko Petroleum. Scorpio Tankers is trading at a lower price-to-earnings ratio than Anadarko Petroleum, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for Scorpio Tankers and Anadarko Petroleum, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scorpio Tankers	1	5	5	0	2.36
Anadarko Petroleum	1	2	3	1	2.57

Scorpio Tankers currently has a consensus price target of $91.57, indicating a potential upside of 9.37%. Anadarko Petroleum has a consensus price target of $21.80, indicating a potential upside of 46.70%. Given Anadarko Petroleum’s stronger consensus rating and higher probable upside, analysts plainly believe Anadarko Petroleum is more favorable than Scorpio Tankers.

Profitability

This table compares Scorpio Tankers and Anadarko Petroleum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Scorpio Tankers	67.16%	16.43%	13.14%
Anadarko Petroleum	N/A	N/A	N/A

Insider and Institutional Ownership

54.6% of Scorpio Tankers shares are held by institutional investors. 7.3% of Scorpio Tankers shares are held by insiders. Comparatively, 0.5% of Anadarko Petroleum shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Scorpio Tankers pays an annual dividend of $1.80 per share and has a dividend yield of 2.1%. Anadarko Petroleum pays an annual dividend of $2.00 per share and has a dividend yield of 13.5%. Scorpio Tankers pays out 11.2% of its earnings in the form of a dividend. Anadarko Petroleum pays out 289.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Scorpio Tankers has raised its dividend for 2 consecutive years.

Summary

Scorpio Tankers beats Anadarko Petroleum on 11 of the 17 factors compared between the two stocks.

About Scorpio Tankers

Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of crude oi and refined petroleum products in the shipping markets worldwide. As of March 21, 2024, its fleet consisted of 110 owned and leases financed tanker, including 39 LR2, 57 MR, and 14 Handymax with a weighted average age of approximately 8.1 years. Scorpio Tankers Inc. was incorporated in 2009 and is headquartered in Monaco.

About Anadarko Petroleum

Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of oil and gas properties. It operates through three segments: Exploration and Production, WES Midstream, and Other Midstream. The company explores for and produces oil, natural gas, and natural gas liquids (NGLs). It is also involved in gathering, processing, treating, and transporting oil, natural-gas, and NGLs production, as well as the gathering and disposal of produced water. The company's oil and natural gas properties are located in the United States onshore and deepwater Gulf of Mexico; and Algeria, Ghana, Mozambique, Colombia, Peru, and other countries. As of December 31, 2018, it had approximately 1.5 billion barrels of oil equivalent of proved reserves. The company was founded in 1959 and is headquartered in The Woodlands, Texas.