Head to Head Analysis: Repsol (OTCMKTS:REPYY) versus Golar LNG (NASDAQ:GLNG)

Repsol (OTCMKTS:REPYY) and Golar LNG (NASDAQ:GLNG) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Dividends

Repsol pays an annual dividend of $0.92 per share and has a dividend yield of 5.6%. Golar LNG pays an annual dividend of $1.00 per share and has a dividend yield of 2.3%. Repsol pays out 143.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Golar LNG pays out -1,428.6% of its earnings in the form of a dividend. Golar LNG has raised its dividend for 2 consecutive years.

Earnings and Valuation

This table compares Repsol and Golar LNG”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Repsol	$61.38 billion	0.31	$1.90 billion	$0.64	25.55
Golar LNG	$260.37 million	17.77	$50.84 million	($0.07)	-632.43

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

Profitability

This table compares Repsol and Golar LNG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Repsol	1.33%	9.06%	4.17%
Golar LNG	-2.83%	6.36%	3.44%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Repsol and Golar LNG, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Repsol	1	4	2	1	2.38
Golar LNG	1	1	3	2	2.86

Golar LNG has a consensus target price of $49.1667, indicating a potential upside of 11.06%. Given Golar LNG’s stronger consensus rating and higher probable upside, analysts clearly believe Golar LNG is more favorable than Repsol.

Insider and Institutional Ownership

0.3% of Repsol shares are held by institutional investors. Comparatively, 92.2% of Golar LNG shares are held by institutional investors. 1.0% of Repsol shares are held by company insiders. Comparatively, 0.0% of Golar LNG 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.

Volatility and Risk

Repsol has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Golar LNG has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500.

Summary

Repsol beats Golar LNG on 10 of the 18 factors compared between the two stocks.

About Repsol

Repsol, S.A. operates as a multi-e energy company worldwide. Its Upstream segment engages in the exploration, development, and production of crude oil and natural gas reserves, as well as develops low-carbon geological solutions. The company's Industrial segment is involved in refining activities and petrochemicals business; the trading, transport, and sale of crude oil, natural gas, and fuels; and development of hydrogen, biomethane, sustainable biofuels, and synthetic fuels. Its Customer segment is involved in mobility; and sale of fuel products, electricity and gas, lubricants, and other specialties. The company's Low-Carbon Generation segment engages in the low-emissions electricity generation and renewable sources. The company also offers asphalt products; installs, operates, and manages service stations; provides maritime services; constructs and operates oil refineries; explores and produces hydrocarbons; offers human resource; distributes and supplies electricity; and develops new energy projects, solar, and wind projects, as well as produces and sells chemical products and lubricants. In addition, it is involved in fuel and special products sale, research, trading and transport, insurance and reinsurance, safety, and financing activities; development of production processes, storage, transport, use, consumption, and transformation of hydrogen; decarbonization activities; and promotion, design, construction, and operation of molecular recycling facilities. Further, the company produces synthetic oil cloths; and invests in liquefaction plant project. The company was formerly known as Repsol YPF, S.A. and changed its name to Repsol, S.A. in May 2012. Repsol, S.A. was founded in 1927 and is headquartered in Madrid, Spain.

About Golar LNG

Golar LNG Limited designs, converts, owns, and operates marine infrastructure for the liquefaction of natural gas. The company operates through three segments: FLNG, Corporate and Other, and Shipping. It engages in the regasification, storage, and offloading of liquefied natural gas (LNG); operation of floating liquefaction natural gas (FLNG) vessels or projects; transportation of LNG carriers; and vessel management activities. Golar LNG Limited was founded in 1946 and is headquartered in Hamilton, Bermuda.