Head-To-Head Contrast: TotalEnergies (NYSE:TTE) & World Kinect (NYSE:WKC)

TotalEnergies (NYSE:TTE) and World Kinect (NYSE:WKC) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.

Dividends

TotalEnergies pays an annual dividend of $2.96 per share and has a dividend yield of 4.8%. World Kinect pays an annual dividend of $0.80 per share and has a dividend yield of 3.1%. TotalEnergies pays out 53.7% of its earnings in the form of a dividend. World Kinect pays out -10.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. World Kinect has raised its dividend for 6 consecutive years.

Valuation and Earnings

This table compares TotalEnergies and World Kinect”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TotalEnergies	$214.55 billion	0.69	$15.76 billion	$5.51	11.15
World Kinect	$42.17 billion	0.03	$67.40 million	($7.63)	-3.39

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for TotalEnergies and World Kinect, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TotalEnergies	0	4	7	3	2.93
World Kinect	2	2	1	0	1.80

TotalEnergies currently has a consensus target price of $66.95, indicating a potential upside of 8.99%. World Kinect has a consensus target price of $29.40, indicating a potential upside of 13.60%. Given World Kinect’s higher possible upside, analysts clearly believe World Kinect is more favorable than TotalEnergies.

Institutional & Insider Ownership

16.5% of TotalEnergies shares are held by institutional investors. Comparatively, 97.1% of World Kinect shares are held by institutional investors. 3.2% of World Kinect shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

TotalEnergies has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, World Kinect has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TotalEnergies	6.20%	13.59%	5.64%
World Kinect	-1.11%	7.07%	2.02%

Summary

TotalEnergies beats World Kinect on 12 of the 18 factors compared between the two stocks.

About TotalEnergies

TotalEnergies SE, a multi-energy company, produces and markets oil and biofuels, natural gas, green gases, renewables, and electricity in France, rest of Europe, North America, Africa, and internationally. It operates through five segments: Exploration & Production, Integrated LNG, Integrated Power, Refining & Chemicals, and Marketing & Services. The Exploration & Production segment is involved in the exploration and production of oil and natural gas. The Integrated LNG segment comprises the integrated gas chain, including upstream and midstream liquified natural gas (LNG) activities, as well as biogas, hydrogen, and gas trading activities. The Integrated Power segment includes generation, storage, electricity trading, and B2B-B2C distribution of gas and electricity. The Refining & Chemicals segment consists of refining, petrochemicals, and specialty chemicals. This segment also includes oil supply, trading, and marine shipping activities. The Marketing & Services segment supplies and markets petroleum products. The company was formerly known as TOTAL SE and changed its name to TotalEnergies SE in June 2021. TotalEnergies SE was founded in 1924 and is headquartered in Courbevoie, France.

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.