Suncor Energy (NYSE:SU) and Gibson Energy (OTCMKTS:GBNXF) Financial Review

Suncor Energy (NYSE:SU) and Gibson Energy (OTCMKTS:GBNXF) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, analyst recommendations, institutional ownership, earnings, dividends and risk.

Profitability

This table compares Suncor Energy and Gibson Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Suncor Energy	11.95%	14.90%	7.40%
Gibson Energy	1.44%	16.96%	3.31%

Valuation and Earnings

This table compares Suncor Energy and Gibson Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Suncor Energy	$37.32 billion	1.26	$4.39 billion	$3.47	11.07
Gibson Energy	$8.60 billion	0.33	$111.06 million	$0.71	24.70

Suncor Energy has higher revenue and earnings than Gibson Energy. Suncor Energy is trading at a lower price-to-earnings ratio than Gibson Energy, indicating that it is currently the more affordable of the two stocks.

Dividends

Suncor Energy pays an annual dividend of $1.66 per share and has a dividend yield of 4.3%. Gibson Energy pays an annual dividend of $1.26 per share and has a dividend yield of 7.2%. Suncor Energy pays out 47.8% of its earnings in the form of a dividend. Gibson Energy pays out 177.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Suncor Energy has raised its dividend for 4 consecutive years.

Volatility & Risk

Suncor Energy has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, Gibson Energy has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Suncor Energy and Gibson Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Suncor Energy	0	3	6	2	2.91
Gibson Energy	0	3	1	1	2.60

Suncor Energy presently has a consensus price target of $64.67, suggesting a potential upside of 68.38%. Given Suncor Energy’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Suncor Energy is more favorable than Gibson Energy.

Institutional and Insider Ownership

67.4% of Suncor Energy shares are owned by institutional investors. Comparatively, 0.2% of Gibson Energy shares are owned by institutional investors. 1.0% of Suncor Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Suncor Energy beats Gibson Energy on 14 of the 18 factors compared between the two stocks.

About Suncor Energy

Suncor Energy Inc. operates as an integrated energy company in Canada, the United States, and internationally. It operates through Oil Sands; Exploration and Production; and Refining and Marketing segments. The Oil Sands segment explores, develops, and produces bitumen, synthetic crude oil, and related products. This segment also engages in oil sands mining. The Exploration and Production segment is involved in offshore operations in the East Coast of Canada; and marketing and risk management of crude oil and natural gas. The Refining and Marketing segment engages in the refining of crude oil products; and distribution, marketing, transportation, and risk management of refined and petrochemical products, and other purchased products through the retail and wholesale networks. This segment is also involved in the trading of crude oil, refined products, natural gas, and power. The company was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in April 1997. Suncor Energy Inc. was founded in 1917 and is headquartered in Calgary, Canada. Suncor Energy Inc.

About Gibson Energy

Gibson Energy Inc., together with its subsidiaries, engages in the gathering, storage, optimization, processing, and marketing of liquids and refined products in Canada and the United States. It operates through Infrastructure and Marketing segments. The Infrastructure segment operates a network of liquid infrastructure assets that include oil terminals, rail loading and unloading facilities, gathering pipelines, a crude oil processing facility, and other terminals. The Marketing segment purchases, sells, stores, and optimizes hydrocarbon products, including crude oil, natural gas liquids, road asphalt, roofing flux, frac oils, light and heavy straight run distillates, vacuum gas oil, and an oil-based mud product. It serves producers, refiners, marketers, and integrated companies, as well as exploration and production companies. The company was formerly known as Gibson Energy Holdings ULC and changed its name to Gibson Energy Inc. in April 2011. Gibson Energy Inc. was founded in 1953 and is headquartered in Calgary, Canada.