Investors are weighing the merits of two energy companies, TotalEnergies and CVR Energy, as potential investment opportunities. A thorough comparison of their financial metrics reveals significant differences in dividend strength, earnings, risk profile, institutional ownership, profitability, and analyst recommendations.
Volatility and Risk Assessment
The stock performance of these companies shows notable volatility distinctions. TotalEnergies has a beta of 0.22, indicating that its stock price is approximately 78% less volatile than the S&P 500 index. In contrast, CVR Energy exhibits a beta of 1.14, suggesting it is 14% more volatile than the same index. This variance in volatility may influence investor decisions based on risk tolerance.
Earnings and Valuation Comparison
A comparative analysis of earnings and valuation metrics further differentiates the two companies. TotalEnergies outperforms CVR Energy in terms of gross revenue and earnings per share. Currently, TotalEnergies trades at a lower price-to-earnings ratio compared to CVR Energy, making it a more affordable investment option based on these metrics.
Profitability figures also favor TotalEnergies, with higher net margins, return on equity, and return on assets. As such, investors might view TotalEnergies as a more financially stable option when assessing long-term investment prospects.
Analyst ratings provide additional insight into the potential future performance of both companies. According to MarketBeat, TotalEnergies has a consensus target price of $66.96, indicating a potential upside of 6.88%. On the other hand, CVR Energy boasts a higher consensus target price of $29.25, suggesting a potential upside of 28.33%. Analysts’ projections indicate a preference for CVR Energy due to its greater upside potential.
Institutional Ownership Trends
Institutional ownership highlights investor confidence in these companies. TotalEnergies has 16.5% of its shares held by institutional investors, reflecting moderate confidence among large investors. In stark contrast, CVR Energy has 98.9% of its shares owned by institutional investors, indicating strong support and belief in its market performance.
The absence of insider ownership in CVR Energy (at 0.0%) may raise questions about management’s confidence in the company’s prospects, while the significant institutional backing serves as a positive signal for its long-term viability.
Company Overviews
Founded in 1924, TotalEnergies SE operates as a multi-energy company headquartered in Courbevoie, France. It engages in the production and marketing of oil, biofuels, natural gas, green gases, renewables, and electricity. The company’s operations are divided into five segments: Exploration & Production, Integrated LNG, Integrated Power, Refining & Chemicals, and Marketing & Services. Notably, TotalEnergies rebranded from TOTAL SE in June 2021 to reflect its commitment to a sustainable energy future.
Conversely, CVR Energy, Inc., established in 1906 and based in Sugar Land, Texas, focuses on petroleum refining and marketing, in addition to nitrogen fertilizer manufacturing. Its operations are categorized into Petroleum and Nitrogen Fertilizer segments, with significant assets including refineries in Kansas and Oklahoma.
In summary, while TotalEnergies leads in several financial metrics, CVR Energy‘s higher upside potential according to analysts could appeal to risk-tolerant investors. The choice between these two companies ultimately hinges on individual investment strategy and risk appetite.
