ConocoPhillips (NYSE:COP) and Sable Offshore (NYSE:SOC) Critical Review

ConocoPhillips (NYSE:COP) and Sable Offshore (NYSE:SOC) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Insider & Institutional Ownership

82.4% of ConocoPhillips shares are held by institutional investors. Comparatively, 26.2% of Sable Offshore shares are held by institutional investors. 0.2% of ConocoPhillips shares are held by insiders. Comparatively, 36.4% of Sable Offshore shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

ConocoPhillips has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500. Comparatively, Sable Offshore has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Profitability

This table compares ConocoPhillips and Sable Offshore’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ConocoPhillips	15.26%	14.60%	7.68%
Sable Offshore	N/A	-88.48%	-17.69%

Analyst Ratings

This is a summary of recent recommendations and price targets for ConocoPhillips and Sable Offshore, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ConocoPhillips	0	4	16	0	2.80
Sable Offshore	1	0	6	0	2.71

ConocoPhillips presently has a consensus price target of $120.62, suggesting a potential upside of 30.65%. Sable Offshore has a consensus price target of $30.00, suggesting a potential upside of 36.67%. Given Sable Offshore’s higher possible upside, analysts plainly believe Sable Offshore is more favorable than ConocoPhillips.

Valuation and Earnings

This table compares ConocoPhillips and Sable Offshore”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ConocoPhillips	$56.95 billion	2.02	$9.25 billion	$7.45	12.39
Sable Offshore	N/A	N/A	-$629.07 million	N/A	N/A

ConocoPhillips has higher revenue and earnings than Sable Offshore.

Summary

ConocoPhillips beats Sable Offshore on 9 of the 11 factors compared between the two stocks.

About ConocoPhillips

ConocoPhillips explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids in the United States, Canada, China, Libya, Malaysia, Norway, the United Kingdom, and internationally. The company's portfolio includes unconventional plays in North America; conventional assets in North America, Europe, Asia, and Australia; global LNG developments; oil sands assets in Canada; and an inventory of global exploration prospects. ConocoPhillips was founded in 1917 and is headquartered in Houston, Texas.

About Sable Offshore

Sable Offshore Corp. engages in the oil and gas exploration and development activities in the United States. The company operates through three platforms located in federal waters offshore California. It owns and operates 16 federal leases across approximately 76,000 acres and subsea pipelines, which transport crude oil, natural gas, and produced water from the platforms to the onshore processing facilities. The company was formerly known as Flame Acquisition Corp. and changed its name to Sable Offshore Corp. in February 2024. Sable Offshore Corp. was incorporated in 2020 and is based in Houston, Texas.