TotalEnergies and CVR Energy, both prominent players in the energy sector, are currently under scrutiny as potential investment options. This comparison evaluates the two companies based on several key factors, including dividends, earnings, risk, institutional ownership, profitability, analyst recommendations, and valuation metrics.
Volatility and Risk Assessment
The risk profiles of these companies differ significantly. TotalEnergies boasts a beta of 0.22, indicating its stock is 78% less volatile than the S&P 500. In contrast, CVR Energy has a beta of 1.14, suggesting its stock price is 14% more volatile than the S&P 500. This variance in volatility may influence investors’ decisions, particularly those with a lower risk tolerance.
Earnings and Valuation Comparison
When examining revenue and earnings, TotalEnergies outperforms CVR Energy. The former reports higher gross revenue and earnings per share. Furthermore, TotalEnergies is currently trading at a lower price-to-earnings ratio compared to CVR Energy, making it a more affordable investment option at this time.
Profitability metrics also favor TotalEnergies, which shows stronger net margins, return on equity, and return on assets compared to its counterpart. These factors provide a clearer picture of the companies’ financial health and potential for long-term growth.
Analysts have provided insights into the market outlook for both companies. TotalEnergies has a consensus target price of $66.96, indicating a potential upside of 6.88%. Conversely, CVR Energy’s consensus target price stands at $29.25, suggesting a higher potential upside of 28.33%. This indicates that analysts consider CVR Energy to have a more favorable outlook despite TotalEnergies’ stronger current performance.
Institutional and Insider Ownership
Investor confidence is often reflected in ownership structures. TotalEnergies has 16.5% of its shares held by institutional investors, whereas an impressive 98.9% of CVR Energy’s shares are owned by institutional investors. Interestingly, CVR Energy has 0.0% of its shares held by company insiders. High institutional ownership can signify a belief in the company’s potential for long-term market outperformance.
Company Overviews
TotalEnergies SE is a multi-energy corporation engaged in the production and marketing of oil, biofuels, natural gas, green gases, renewables, and electricity. The company operates through five segments: Exploration & Production, Integrated LNG, Integrated Power, Refining & Chemicals, and Marketing & Services. Founded in 1924 and headquartered in Courbevoie, France, TotalEnergies has established itself as a key player in the global energy landscape.
In contrast, CVR Energy, Inc. focuses on petroleum refining and nitrogen fertilizer manufacturing in the United States. Its operations are divided into two main segments: Petroleum and Nitrogen Fertilizer. The company owns and operates refineries in Kansas and Oklahoma, serving various market segments, including retailers and agricultural customers. Established in 1906 and based in Sugar Land, Texas, CVR Energy is a subsidiary of Icahn Enterprises L.P.
Conclusion
In summary, TotalEnergies leads in many financial metrics, outperforming CVR Energy in categories such as profitability and earnings. However, CVR Energy presents considerable upside potential according to analyst predictions. Investors must weigh the strengths and weaknesses of both companies, considering their individual investment goals and risk tolerance. As the energy market continues to evolve, both TotalEnergies and CVR Energy remain significant players deserving of attention.
