Comparing World Kinect (NYSE:WKC) & Galp Energia SGPS (OTCMKTS:GLPEY)

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

Dividends

World Kinect pays an annual dividend of $0.80 per share and has a dividend yield of 3.2%. Galp Energia SGPS pays an annual dividend of $0.17 per share and has a dividend yield of 1.8%. World Kinect pays out 333.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Galp Energia SGPS pays out 23.9% of its earnings in the form of a dividend. World Kinect has increased its dividend for 6 consecutive years. World Kinect is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

97.1% of World Kinect shares are held by institutional investors. 3.2% of World Kinect shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares World Kinect and Galp Energia SGPS”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
World Kinect	$42.17 billion	0.03	$67.40 million	$0.24	105.50
Galp Energia SGPS	$22.54 billion	0.58	$1.13 billion	$0.71	13.24

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

Analyst Ratings

This is a summary of recent ratings and price targets for World Kinect and Galp Energia SGPS, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
World Kinect	2	2	1	0	1.80
Galp Energia SGPS	0	0	0	4	4.00

World Kinect currently has a consensus target price of $29.80, indicating a potential upside of 17.69%. Given World Kinect’s higher probable upside, equities research analysts clearly believe World Kinect is more favorable than Galp Energia SGPS.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
World Kinect	-1.11%	6.73%	1.97%
Galp Energia SGPS	4.79%	18.04%	6.07%

Volatility & Risk

World Kinect has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, Galp Energia SGPS has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500.

Summary

Galp Energia SGPS beats World Kinect on 10 of the 18 factors compared between the two stocks.

About World Kinect

World Kinect Corporation operates as an energy management company in the United States, the Americas, Europe, the Middle East, Africa, and the Asia Pacific. This segment also offers fuel management, price risk management, ground handling, dispatch services, and trip planning services, such as flight planning and scheduling, weather reports and overflight permits; payment and processing services; and operates a web-based marketplace platform. The Land segment offers fuel, lubricants, heating oil, and related products and services to retail petroleum operators, as well as industrial, commercial, residential and government customers. This segment also provides sustainability solutions, such as renewable fuel products, carbon management, and renewable energy solutions; distributes fuel under long-term contracts to branded and unbranded distributors, convenience stores, and retail fuel outlets operated by third parties; distributes heating oil and unbranded fuel; and transportation logistics. The Marine segment markets fuel, lubricants, and related products and services to international container, dry bulk and tanker fleets, commercial cruise lines, yachts and time charter operators, offshore rig owners and operators, the U.S. and foreign governments, and other fuel suppliers. This segment also offers marine fuel-related services include management services to procurement of fuel, price risk management, cost control, quality control, and claims management services; and engages in the fueling of vessels, and transportation and delivery of fuel and fuel-related products. The company was formerly known as World Fuel Services Corporation and changed its name to World Kinect Corporation in June 2023. World Kinect Corporation was incorporated in 1984 and is headquartered in Miami, Florida.

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.