Sunoco (NYSE:SUN – Get Free Report) and Chord Energy (NASDAQ:CHRD – Get Free Report) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Institutional & Insider Ownership
24.3% of Sunoco shares are held by institutional investors. Comparatively, 97.8% of Chord Energy shares are held by institutional investors. 0.8% of Chord Energy 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.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Sunoco and Chord Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sunoco | 0 | 1 | 8 | 1 | 3.00 |
| Chord Energy | 0 | 6 | 11 | 0 | 2.65 |
Profitability
This table compares Sunoco and Chord Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sunoco | 2.88% | 18.78% | 4.29% |
| Chord Energy | 13.42% | 10.18% | 6.24% |
Volatility and Risk
Sunoco has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500. Comparatively, Chord Energy has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500.
Dividends
Sunoco pays an annual dividend of $4.01 per share and has a dividend yield of 5.4%. Chord Energy pays an annual dividend of $5.20 per share and has a dividend yield of 3.7%. Sunoco pays out 88.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chord Energy pays out 34.9% of its earnings in the form of a dividend. Sunoco has increased its dividend for 3 consecutive years and Chord Energy has increased its dividend for 1 consecutive years. Sunoco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
This table compares Sunoco and Chord Energy”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sunoco | $25.20 billion | 0.61 | $527.00 million | $4.52 | 16.57 |
| Chord Energy | $4.88 billion | 1.59 | $44.46 million | $14.92 | 9.48 |
Sunoco has higher revenue and earnings than Chord Energy. Chord Energy is trading at a lower price-to-earnings ratio than Sunoco, indicating that it is currently the more affordable of the two stocks.
Summary
Chord Energy beats Sunoco on 10 of the 18 factors compared between the two stocks.
About Sunoco
Sunoco LP, together with its subsidiaries, distributes and retails motor fuels in the United States. It operates through two segments: Fuel Distribution and Marketing, and All Other. The Fuel Distribution and Marketing segment purchases motor fuel, as well as other petroleum products, such as propane and lubricating oil from independent refiners and oil companies and supplies it to company-operated retail stores, independently operated commission agents, and retail stores, as well as other commercial customers, including unbranded retail stores, other fuel distributors, school districts, municipalities, and other industrial customers. It owns and operates retail stores under the APlus and Aloha Island Mart brand names; and offers food, beverages, snacks, grocery and non-food merchandise, motor fuels, and other services. The All Other segment includes partnership credit card services, franchise royalties, and retail operations; and offers credit card processing, car washes, lottery, automated teller machines, money order, prepaid phone cards, and wireless services. The company was formerly known as Susser Petroleum Partners LP and changed its name to Sunoco LP in 2014. Sunoco LP was founded in 1886 and is headquartered in Dallas, Texas.
About Chord Energy
Chord Energy Corporation operates as an independent exploration and production company in the United States. It acquires, explores, develops, and produces crude oil, natural gas, and natural gas liquids in the Williston Basin. The company sells its products to refiners, marketers, and other purchasers that have access to nearby pipeline and rail facilities. The company was formerly known as Oasis Petroleum Inc. and changed its name to Chord Energy Corporation in July 2022. Chord Energy Corporation was founded in 2007 and is headquartered in Houston, Texas.
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