Analyzing BP (BP) and The Competition

BP (NYSE:BP) is one of 1,050 publicly-traded companies in the “Oil, Gas & Consumable Fuels” industry, but how does it weigh in compared to its rivals? We will compare BP to similar businesses based on the strength of its valuation, profitability, institutional ownership, risk, earnings, analyst recommendations and dividends.

Dividends

BP pays an annual dividend of $2.06 per share and has a dividend yield of 4.2%. BP pays out 100.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 8.5% and pay out -122.0% of their earnings in the form of a dividend. BP lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Volatility & Risk

BP has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500. Comparatively, BP’s rivals have a beta of -3.72, meaning that their average stock price is 472% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for BP and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BP	2	8	15	1	2.58
BP Competitors	5963	26932	40752	2404	2.52

BP presently has a consensus price target of $49.90, indicating a potential upside of 2.75%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 18.53%. Given BP’s rivals higher possible upside, analysts clearly believe BP has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

11.0% of BP shares are held by institutional investors. Comparatively, 30.7% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 1.0% of BP shares are held by company insiders. Comparatively, 15.4% of shares of all “Oil, Gas & Consumable Fuels” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares BP and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
BP	$192.55 billion	$55.00 million	23.69
BP Competitors	$14.74 billion	$5.51 billion	0.32

BP has higher revenue, but lower earnings than its rivals. BP is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares BP and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BP	3.74%	24.97%	6.49%
BP Competitors	-472.90%	19.17%	6.33%

Summary

BP beats its rivals on 9 of the 15 factors compared.

About BP

BP p.l.c. provides carbon products and services. The company operates through Gas & Low Carbon Energy, Oil Production & Operations, and Customers & Products segments. It engages in the production of natural gas, and integrated gas and power; trading of gas; operation of onshore and offshore wind power, as well as hydrogen and carbon capture and storage facilities; trading and marketing of renewable and non-renewable power; and production of crude oil. In addition, the company involved in convenience and retail fuel, EV charging, Castrol lubricant, aviation, B2B, and midstream businesses; refining and oil trading; and bioenergy business. The company was founded in 1908 and is headquartered in London, the United Kingdom.