Anadarko Petroleum (NASDAQ:APC) vs. Scorpio Tankers (NYSE:STNG) Head-To-Head Analysis

Anadarko Petroleum (NASDAQ:APC) and Scorpio Tankers (NYSE:STNG) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.

Profitability

This table compares Anadarko Petroleum and Scorpio Tankers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Anadarko Petroleum	N/A	N/A	N/A
Scorpio Tankers	67.16%	16.43%	13.14%

Insider and Institutional Ownership

54.6% of Scorpio Tankers shares are owned by institutional investors. 0.5% of Anadarko Petroleum shares are owned by insiders. Comparatively, 7.3% of Scorpio Tankers shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Anadarko Petroleum pays an annual dividend of $2.00 per share and has a dividend yield of 11.8%. Scorpio Tankers pays an annual dividend of $1.80 per share and has a dividend yield of 2.2%. Anadarko Petroleum pays out 289.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Scorpio Tankers pays out 11.2% of its earnings in the form of a dividend. Scorpio Tankers has raised its dividend for 2 consecutive years.

Analyst Ratings

This is a summary of current ratings and target prices for Anadarko Petroleum and Scorpio Tankers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Anadarko Petroleum	1	2	3	1	2.57
Scorpio Tankers	1	5	5	0	2.36

Anadarko Petroleum currently has a consensus price target of $21.80, indicating a potential upside of 28.46%. Scorpio Tankers has a consensus price target of $91.57, indicating a potential upside of 12.70%. Given Anadarko Petroleum’s stronger consensus rating and higher probable upside, analysts plainly believe Anadarko Petroleum is more favorable than Scorpio Tankers.

Earnings & Valuation

This table compares Anadarko Petroleum and Scorpio Tankers”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Anadarko Petroleum	$5.97 billion	0.04	$32.73 million	$0.69	24.59
Scorpio Tankers	$938.22 million	4.37	$344.29 million	$16.01	5.07

Scorpio Tankers has lower revenue, but higher earnings than Anadarko Petroleum. Scorpio Tankers is trading at a lower price-to-earnings ratio than Anadarko Petroleum, indicating that it is currently the more affordable of the two stocks.

Summary

Scorpio Tankers beats Anadarko Petroleum on 11 of the 17 factors compared between the two stocks.

About Anadarko Petroleum

Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of oil and gas properties. It operates through three segments: Exploration and Production, WES Midstream, and Other Midstream. The company explores for and produces oil, natural gas, and natural gas liquids (NGLs). It is also involved in gathering, processing, treating, and transporting oil, natural-gas, and NGLs production, as well as the gathering and disposal of produced water. The company's oil and natural gas properties are located in the United States onshore and deepwater Gulf of Mexico; and Algeria, Ghana, Mozambique, Colombia, Peru, and other countries. As of December 31, 2018, it had approximately 1.5 billion barrels of oil equivalent of proved reserves. The company was founded in 1959 and is headquartered in The Woodlands, Texas.

About Scorpio Tankers

Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of crude oi and refined petroleum products in the shipping markets worldwide. As of March 21, 2024, its fleet consisted of 110 owned and leases financed tanker, including 39 LR2, 57 MR, and 14 Handymax with a weighted average age of approximately 8.1 years. Scorpio Tankers Inc. was incorporated in 2009 and is headquartered in Monaco.