Reviewing Chevron (NYSE:CVX) & Teekay (NYSE:TK)

Chevron (NYSE:CVX) and Teekay (NYSE:TK) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Volatility & Risk

Chevron has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Teekay has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500.

Institutional & Insider Ownership

72.4% of Chevron shares are owned by institutional investors. Comparatively, 46.7% of Teekay shares are owned by institutional investors. 0.2% of Chevron shares are owned by insiders. Comparatively, 2.4% of Teekay shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Chevron and Teekay”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chevron	$202.79 billion	1.31	$17.66 billion	$8.75	17.35
Teekay	$1.22 billion	0.58	$133.77 million	$1.41	5.47

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

Analyst Recommendations

This is a summary of recent recommendations for Chevron and Teekay, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chevron	3	8	8	0	2.26
Teekay	0	0	0	0	0.00

Chevron presently has a consensus target price of $161.65, indicating a potential upside of 6.49%. Given Chevron’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Chevron is more favorable than Teekay.

Profitability

This table compares Chevron and Teekay’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chevron	7.76%	10.73%	6.45%
Teekay	10.96%	5.67%	5.08%

Dividends

Chevron pays an annual dividend of $6.84 per share and has a dividend yield of 4.5%. Teekay pays an annual dividend of $0.25 per share and has a dividend yield of 3.2%. Chevron pays out 78.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Teekay pays out 17.7% of its earnings in the form of a dividend. Chevron has increased its dividend for 38 consecutive years and Teekay has increased its dividend for 1 consecutive years. Chevron is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Chevron beats Teekay on 14 of the 17 factors compared between the two stocks.

About Chevron

Chevron Corporation, through its subsidiaries, engages in the integrated energy and chemicals operations in the United States and internationally. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, production, and transportation of crude oil and natural gas; processing, liquefaction, transportation, and regasification of liquefied natural gas; transportation of crude oil through pipelines; transportation, storage, and marketing of natural gas; and carbon capture and storage, as well as a gas-to-liquids plant. The Downstream segment refines crude oil into petroleum products; markets crude oil, refined products, and lubricants; manufactures and markets renewable fuels, commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives; and transports crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car. The company was formerly known as ChevronTexaco Corporation and changed its name to Chevron Corporation in 2005. Chevron Corporation was founded in 1879 and is headquartered in San Ramon, California.

About Teekay

Teekay Corporation engages in the international crude oil and other marine transportation services worldwide. The company owns and operates crude oil and refined product tankers. It also provides ship-to-ship support services; tanker commercial management operation services; and operational and maintenance marine services. As of March 1, 2024, the company operated a fleet of approximately 53 owned and chartered-in vessels. It serves energy and utility companies, major oil traders, large oil consumers and petroleum product producers, government agencies, and various other entities that depend upon marine transportation. Teekay Corporation was founded in 1973 and is headquartered in Hamilton, Bermuda.