Contrasting Chaparral Energy (NYSE:CHAP) & Sasol (NYSE:SSL)

Chaparral Energy (NYSE:CHAP) and Sasol (NYSE:SSL) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Chaparral Energy and Sasol, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chaparral Energy 0 0 1 0 3.00
Sasol 1 2 5 0 2.50

Chaparral Energy presently has a consensus price target of $6.00, indicating a potential upside of 554.38%. Given Chaparral Energy’s stronger consensus rating and higher probable upside, equities analysts plainly believe Chaparral Energy is more favorable than Sasol.

Profitability

This table compares Chaparral Energy and Sasol’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chaparral Energy -86.43% -2.08% -1.23%
Sasol N/A N/A N/A

Volatility and Risk

Chaparral Energy has a beta of 4.4, meaning that its stock price is 340% more volatile than the S&P 500. Comparatively, Sasol has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.

Institutional and Insider Ownership

91.8% of Chaparral Energy shares are owned by institutional investors. Comparatively, 2.3% of Sasol shares are owned by institutional investors. 2.2% of Chaparral Energy shares are owned by insiders. Comparatively, 1.0% of Sasol shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Chaparral Energy and Sasol’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chaparral Energy $247.36 million 0.17 $33.44 million $0.31 2.96
Sasol $14.35 billion 0.68 $303.01 million $2.17 7.25

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

Summary

Sasol beats Chaparral Energy on 9 of the 14 factors compared between the two stocks.

Chaparral Energy Company Profile

Chaparral Energy, Inc. engages in the acquisition, exploration, development, production, and operation of onshore oil and natural gas properties primarily in Oklahoma, the United States. The company sells crude oil, natural gas, and natural gas liquids primarily to refineries and gas processing plant. The company was founded in 1988 and is headquartered in Oklahoma City, Oklahoma.

Sasol Company Profile

Sasol Limited operates as an integrated chemical and energy company in South Africa. The company operates through Mining, Exploration and Production International, Energy, Base Chemicals, and Performance Chemicals segments. It operates coal mines; and develops and manages upstream interests in oil and gas exploration and production in Mozambique, South Africa, Australia, Canada, Gabon, and Australia. The company also markets and sells gas, electricity, and liquid fuels products; and develops, implements, and manages international gas-to-liquids and coal-to-liquids ventures. In addition, it produces and markets explosives, fertilizers, polymers, and mining reagents, as well as alcohols, ketones, acrylate monomers, and other oxygenated solvemnts for use in various applications, such as aerosols, cosmetics, fragrances, packaging, paints, adhesives, pharmaceuticals, polishes, printing and plastics, mining, pulp and paper, steel, textiles, water treatment and purification, agricultural fertilizers, and chemicals. Further, the company markets organic and inorganic commodity and specialty chemicals comprising organics, inorganics, wax, phenolic, carbon, ammonia, and specialty gases; and offers engineering and project services. Sasol Limited was founded in 1950 and is headquartered in Johannesburg, South Africa.

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