Contrasting Sasol (NYSE:SSL) and Sanchez Energy (OTCMKTS:SNEC)

Sanchez Energy (OTCMKTS:SNEC) and Sasol (NYSE:SSL) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Sanchez Energy and Sasol, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sanchez Energy	0	0	0	0	0.00
Sasol	0	1	0	0	2.00

Given Sanchez Energy’s higher possible upside, equities analysts plainly believe Sanchez Energy is more favorable than Sasol.

Valuation & Earnings

This table compares Sanchez Energy and Sasol”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sanchez Energy	$1.06 billion	0.00	$85.21 million	N/A	N/A
Sasol	$262.30 billion	0.01	-$2.37 billion	$2.27	1.40

Sanchez Energy has higher earnings, but lower revenue than Sasol.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sanchez Energy	2.22%	-18.15%	3.09%
Sasol	N/A	N/A	N/A

Risk and Volatility

Sanchez Energy has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500. Comparatively, Sasol has a beta of 1.72, suggesting that its share price is 72% more volatile than the S&P 500.

Institutional and Insider Ownership

0.6% of Sanchez Energy shares are held by institutional investors. Comparatively, 1.2% of Sasol shares are held by institutional investors. 11.1% of Sanchez Energy shares are held by company insiders. Comparatively, 1.0% of Sasol shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

About Sanchez Energy

Sanchez Energy Corporation, an independent exploration and production company, focuses on the acquisition and development of onshore unconventional oil and natural gas resources in the United States. It engages in the horizontal development of resources from the Eagle Ford Shale in South Texas. It also holds an undeveloped acreage position in the Tuscaloosa Marine Shale (TMS) in Mississippi and Louisiana. As of December 31, 2018, the company had assembled approximately 271,000 net acres in the Eagle Ford Shale; and owned approximately 34,000 net acres in the TMS. Sanchez Energy Corporation was founded in 2011 and is headquartered in Houston, Texas.

About Sasol

Sasol Limited operates as a chemical and energy company in South Africa and internationally. It offers alumina, such as battery materials, catalyst supports, abrasives and polishing, and polymer additives; cobalt fischer-tropsch catalysts; carbon-based and recarburiser products; graphite electrodes; and mono-ethylene glycol and chlor-alkali products, monomers, mining chemicals and reagents, blends and hydrocarbons, methanol products, polymers, phenolics, and fertilizers. The company also provides linear alkyl benzene, sulfonate, macrogol/polyethylene glycol, ethanol, isopropyl, acetone, and MIBK and ethyl acetate products; and fatty alcohols, alkoxylates, ether sulfates, solvents, dispersants, diluents esters, alpha-hydroxy acids ester, waxes, diluents, guerbet alcohols, biosurfactants, C6-C20+ alcohols, ethoxylates, propoxylates, paraffins/isoparaffins, parafols, amines, alkylphenols, and sulfates. In addition, it offers alcohols, esters, ethers, carboxylic acids, surfactants, oil and water soluble polyglycols, formulation and surface modifiers, solvents and coalescents, wax cuts, blends and forms, FT hard waxes, blends, lubrication packages, nucleators, release agents, emulsifiers, wetting agents, tank-mix adjuvant components, fertilizer additives, and specialty solvents. Further, the company explores, develops, produces, markets, and distributes natural oil and gas, and associated products; markets fuels and lubricants; develops and implements GTL and CTL ventures; operates coal mines; trades and transports oil, petrochemicals, and chemical products and derivatives; and provides engineering, research and development, and technology transfer services. Sasol Limited was founded in 1950 and is based in Johannesburg, South Africa.