Shell (NYSE:SHEL) versus Delek Group (OTCMKTS:DGRLY) Critical Survey

Shell (NYSE:SHEL) and Delek Group (OTCMKTS:DGRLY) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

28.6% of Shell shares are owned by institutional investors. 1.0% of Shell shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Shell and Delek Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shell	0	7	10	1	2.67
Delek Group	0	0	0	0	0.00

Shell presently has a consensus price target of $76.71, suggesting a potential upside of 4.86%. Given Shell’s stronger consensus rating and higher probable upside, equities analysts plainly believe Shell is more favorable than Delek Group.

Valuation and Earnings

This table compares Shell and Delek Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shell	$289.03 billion	0.74	$16.09 billion	$4.44	16.48
Delek Group	$3.23 billion	N/A	$379.36 million	N/A	N/A

Shell has higher revenue and earnings than Delek Group.

Profitability

This table compares Shell and Delek Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shell	4.93%	10.67%	5.02%
Delek Group	N/A	N/A	N/A

Summary

Shell beats Delek Group on 11 of the 11 factors compared between the two stocks.

About Shell

Shell plc operates as an energy and petrochemical company Europe, Asia, Oceania, Africa, the United States, and Rest of the Americas. The company operates through Integrated Gas, Upstream, Marketing, Chemicals and Products, and Renewables and Energy Solutions segments. It explores for and extracts crude oil, natural gas, and natural gas liquids; markets and transports oil and gas; produces gas-to-liquids fuels and other products; and operates upstream and midstream infrastructure to deliver gas to market. The company also markets and trades natural gas, liquefied natural gas (LNG), crude oil, electricity, carbon-emission rights; and markets and sells LNG as a fuel for heavy-duty vehicles. In addition, it trades in and refines crude oil and other feed stocks, such as low-carbon fuels, lubricants, bitumen, sulphur, gasoline, diesel, aviation fuel, and marine fuel; produces and sells petrochemicals for industrial use; and manages oil sands activities. Further, the company produces base chemicals comprising ethylene, propylene, and aromatics, as well as intermediate chemicals, such as styrene monomer, propylene oxide, solvents, detergent alcohols, ethylene oxide, and ethylene glycol. Additionally, it generates electricity through wind and solar resources; produces and sells hydrogen; and provides electric vehicle charging services. The company was formerly known as Royal Dutch Shell plc and changed its name to Shell plc in January 2022. Shell plc was founded in 1907 and is headquartered in London, the United Kingdom.

About Delek Group

Delek Group Ltd., an energy company, develops, produces, and sells natural gas in Israel and internationally. The company operates through three segments: Energy in Israel, Energy Abroad, and Fuel Products. It holds interests in Tamar, Leviathan, and Aphrodite projects in the Mediterranean; holds rights to oil assets in the Gulf of Mexico and Canada, as well as oil and gas reserves in the North Sea off the coast of England; and owns production, treatment, and storage facilities. The company also operates gas stations with on-site convenience stores; and provides fuel storage and distribution services in Israel. In addition, it provides fuel products and other services, such as white products, comprising gasoline, diesel fuel, LPG, kerosene, jet fuel, and natural gas/CNG; black products, including fuel oil and bitumen; and industrial products, such as engine oils, lubricants, and greases. Further, the company offers services, such as restaurants, cafes, car wash services, etc.; ship services to refueling services at Israeli ports; and retail products comprising food products, beverages, cigarettes, and other products through Menta convenience stores, as well as sells car accessories. Additionally, it engages in the construction and operation of power plants; orchard management activities; processing, packaging, and marketing of fruits; and leasing activities. The company also supplies water for irrigation; cooling storage systems; and provides drinking water pumping services. As of December 31, 2019, it operated 160 convenience stores, including 25 franchised convenience stores, which have coffee and food sales points under the Cup O' Joe brand name. Delek Group Ltd. was founded in 1951 and is headquartered in Herzliya, Israel.