Head-To-Head Contrast: BP (NYSE:BP) vs. Sasol (NYSE:SSL)

BP (NYSE:BP) and Sasol (NYSE:SSL) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.

Earnings & Valuation

This table compares BP and Sasol”s gross 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
Sasol	$14.72 billion	0.25	-$2.37 billion	$2.27	2.55

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

Profitability

This table compares BP and Sasol’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%
Sasol	N/A	N/A	N/A

Risk & Volatility

BP has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, Sasol has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for BP and Sasol, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BP	1	10	2	3	2.44
Sasol	0	1	0	0	2.00

BP currently has a consensus target price of $36.3889, indicating a potential upside of 6.84%. Given BP’s stronger consensus rating and higher possible upside, equities research analysts clearly believe BP is more favorable than Sasol.

Insider & Institutional Ownership

11.0% of BP shares are held by institutional investors. Comparatively, 1.2% of Sasol shares are held by institutional investors. 1.0% of BP shares are held by insiders. Comparatively, 1.0% of Sasol shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

BP beats Sasol on 12 of the 14 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 Sasol

Sasol Limited operates as a chemical and energy company in South Africa and internationally. It offers alumina, such as battery materials, catalyst supports, abrasives and polishing, and polymer additives; cobalt fischer-tropsch catalysts; carbon-based and recarburiser products; graphite electrodes; and mono-ethylene glycol and chlor-alkali products, monomers, mining chemicals and reagents, blends and hydrocarbons, methanol products, polymers, phenolics, and fertilizers. The company also provides linear alkyl benzene, sulfonate, macrogol/polyethylene glycol, ethanol, isopropyl, acetone, and MIBK and ethyl acetate products; and fatty alcohols, alkoxylates, ether sulfates, solvents, dispersants, diluents esters, alpha-hydroxy acids ester, waxes, diluents, guerbet alcohols, biosurfactants, C6-C20+ alcohols, ethoxylates, propoxylates, paraffins/isoparaffins, parafols, amines, alkylphenols, and sulfates. In addition, it offers alcohols, esters, ethers, carboxylic acids, surfactants, oil and water soluble polyglycols, formulation and surface modifiers, solvents and coalescents, wax cuts, blends and forms, FT hard waxes, blends, lubrication packages, nucleators, release agents, emulsifiers, wetting agents, tank-mix adjuvant components, fertilizer additives, and specialty solvents. Further, the company explores, develops, produces, markets, and distributes natural oil and gas, and associated products; markets fuels and lubricants; develops and implements GTL and CTL ventures; operates coal mines; trades and transports oil, petrochemicals, and chemical products and derivatives; and provides engineering, research and development, and technology transfer services. Sasol Limited was founded in 1950 and is based in Johannesburg, South Africa.