Comparing Galp Energia SGPS (OTCMKTS:GLPEY) and BP (NYSE:BP)

Galp Energia SGPS (OTCMKTS:GLPEY) and BP (NYSE:BP) are both large-cap energy companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Dividends

Galp Energia SGPS pays an annual dividend of $0.18 per share and has a dividend yield of 1.6%. BP pays an annual dividend of $2.06 per share and has a dividend yield of 4.3%. Galp Energia SGPS pays out 22.2% of its earnings in the form of a dividend. BP pays out 60.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Insider and Institutional Ownership

11.0% of BP shares are held by institutional investors. 1.0% of BP shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Galp Energia SGPS and BP”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Galp Energia SGPS	$22.89 billion	0.66	$1.27 billion	$0.81	13.83
BP	$192.55 billion	0.65	$55.00 million	$3.40	13.99

Galp Energia SGPS has higher earnings, but lower revenue than BP. Galp Energia SGPS is trading at a lower price-to-earnings ratio than BP, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Galp Energia SGPS and BP, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Galp Energia SGPS	0	5	3	1	2.56
BP	2	8	14	1	2.56

BP has a consensus price target of $49.90, indicating a potential upside of 4.88%. Given BP’s stronger consensus rating and higher probable upside, analysts clearly believe BP is more favorable than Galp Energia SGPS.

Risk and Volatility

Galp Energia SGPS has a beta of 0.07, indicating that its stock price is 93% less volatile than the S&P 500. Comparatively, BP has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500.

Profitability

This table compares Galp Energia SGPS and BP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Galp Energia SGPS	4.55%	28.78%	9.53%
BP	3.74%	24.67%	6.42%

Summary

BP beats Galp Energia SGPS on 9 of the 16 factors compared between the two stocks.

About Galp Energia SGPS

Galp Energia, SGPS, S.A. operates as an integrated energy operator in Portugal and internationally. The company operates through four segments: Upstream, Industrial & Midstream, Commercial, and Renewables and New Business. The Upstream segment engages in the exploration, development, and production of hydrocarbons primarily in Brazil, Mozambique, Namibia, and Angola. The Industrial & Midstream segment owns refineries in Portugal, as well as is involved in activities related to energy management of oil products, gas, and electricity. This segment provides storage and transportation infrastructure for oil and gas products, as well as engages in the sale of electricity to the grid in Portugal and Spain. The Commercial segment is involved in the areas of retail to final business-to-business and business to consumer customers of oil, gas, and electricity. The Renewables and New Business segment is involved in the development of solar and wind power generation projects in Portugal and Spain. In addition, it produces lithium-ion batteries, hydrogen, and biofuels; and operates service stations. Further, the company engages in the reinsurance business. The company was formerly known as Galp Petróleos e Gás de Portugal, SGPS, S.A. and changed its name to Galp Energia, SGPS, S.A. in September 2000. Galp Energia, SGPS, S.A. was incorporated in 1999 and is headquartered in Lisbon, Portugal.

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.