Financial Review: Neste Oyj (OTCMKTS:NTOIF) & ENEOS (OTCMKTS:JXHLY)

Neste Oyj (OTCMKTS:NTOIF) and ENEOS (OTCMKTS:JXHLY) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.

Dividends

Neste Oyj pays an annual dividend of $0.65 per share and has a dividend yield of 2.1%. ENEOS pays an annual dividend of C$0.26 per share and has a dividend yield of 1.5%. Neste Oyj pays out 60.7% of its earnings in the form of a dividend. ENEOS pays out 0.9% 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.

Analyst Recommendations

This is a summary of current ratings for Neste Oyj and ENEOS, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neste Oyj	0	0	3	0	3.00
ENEOS	0	0	0	1	4.00

Profitability

This table compares Neste Oyj and ENEOS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neste Oyj	N/A	N/A	N/A
ENEOS	N/A	N/A	N/A

Valuation & Earnings

This table compares Neste Oyj and ENEOS”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neste Oyj	N/A	N/A	N/A	$1.07	28.60
ENEOS	N/A	N/A	N/A	C$28.15	0.63

ENEOS is trading at a lower price-to-earnings ratio than Neste Oyj, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

13.0% of Neste Oyj shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

About Neste Oyj

Neste Oyj provides renewable diesel and sustainable aviation fuel in Finland, and other Nordic countries, Baltic Rim, other European countries, North and South America, and internationally. The company operates in four segments: Renewable Products, Oil Products, Marketing & Services, and Others. The Renewable Products segment produces, markets, and sells renewable diesel, sustainable aviation fuel, renewable solvents, and feedstock for bioplastics to wholesale markets. The Oil Products segment produces, markets, and sells diesel, gasoline, aviation and marine fuels, light and heavy fuel oils, and gasoline components, as well as special fuels, such as small-engine gasoline, solvents, liquid gases, and bitumen. This segment serves retailers and distributors, oil majors and trading companies, petrochemicals companies, and companies marketing lubricants and solvents, as well as road transportation, non-road uses, aviation and marine sectors. The Marketing & Services segment markets and sells cleaner fuels and oil products, and associated services to private motorists, transport companies, customers in aviation, shipping, industrial and agricultural sectors, municipalities, farmers, and heating oil customers through a network of service stations, as well as direct sales and distributors. The Others segment offers engineering solutions. The company was formerly known as Neste Oil Oyj and changed its name to Neste Oyj in June 2015. Neste Oyj was founded in 1948 and is headquartered in Espoo, Finland.

About ENEOS

ENEOS Holdings, Inc., through its subsidiaries, operates in the energy, oil and natural gas exploration and production, and metals businesses in Japan, China, Asia, and internationally. It manufactures and sells petroleum products, including gasoline, kerosene, lubricants, etc.; imports and sells gas; and supplies electricity and hydrogen, as well as provides petrochemicals; and offers crude oil, natural gas, and copper concentrates. The company offers non-ferrous metal products, including electrolytic coppers, functional materials, and thin-film materials. In addition, it develops and explores non-ferrous metal resources and products; and produces and sells titanium and electric wires. Further, the company offers copper foils, precision rolled, and precision-fabricated products. Additionally, it engages in the asphalt paving, civil engineering, construction, land transportation; rail transportation of oil products; and real estate leasing, sale and purchase, and management. Furthermore, it also provides nonlife insurance; and temporary staffing, recruitment, training, and office support services. ENEOS Holdings, Inc. was founded in 1888 and is headquartered in Tokyo, Japan.