Contrasting OMV (OTCMKTS:OMVKY) and BP (NYSE:BP)

BP (NYSE:BP) and OMV (OTCMKTS:OMVKY) are both large-cap energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.

Dividends

BP pays an annual dividend of $1.98 per share and has a dividend yield of 5.8%. OMV pays an annual dividend of $0.58 per share and has a dividend yield of 4.2%. BP pays out 942.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. OMV pays out 18.8% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and target prices for BP and OMV, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BP	1	10	2	3	2.44
OMV	0	0	0	1	4.00

BP presently has a consensus price target of $36.3889, indicating a potential upside of 6.84%. Given BP’s higher probable upside, equities analysts plainly believe BP is more favorable than OMV.

Volatility and Risk

BP has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, OMV has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500.

Profitability

This table compares BP and OMV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BP	0.29%	9.08%	2.57%
OMV	3.12%	7.02%	3.52%

Earnings & Valuation

This table compares BP and OMV”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BP	$194.63 billion	0.46	$381.00 million	$0.21	162.19
OMV	$36.77 billion	0.49	$1.57 billion	$3.09	4.45

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

Insider and Institutional Ownership

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

Summary

BP beats OMV on 10 of the 17 factors compared between the two stocks.

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.

About OMV

OMV Aktiengesellschaft operates as an energy and chemicals company in Austria, Germany, Romania, Norway, Belgium, New Zealand, the United Arab Emirates, the rest of Central and Eastern Europe, the rest of Europe, and internationally. It operates through three segments: Chemicals & Materials, Fuels & Feedstock, and Energy. The company engages in the exploration, development, and production of oil and gas in the regions of Central and Eastern Europe, the Middle East and Africa, the North Sea, and the Asia Pacific; and refining and marketing of fuels and feedstock, as well as supply, marketing, trading, and logistics of gas in Romania and Turkey. In addition, the company provides advanced and circular polyolefin solutions, and base chemicals, as well as engages in the recycling of plastics. It has refineries in Europe, Schwechat, and Burghausen; filling stations in eight European countries; and gas storage facilities in Austria and Germany, as well as a gas-fired power plant in Romania. The company was founded in 1956 and is headquartered in Vienna, Austria.