Analyzing Vermilion Energy (NYSE:VET) and Total (NYSE:TOT)

Vermilion Energy (NYSE:VET) and Total (NYSE:TOT) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Profitability

This table compares Vermilion Energy and Total’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vermilion Energy 15.42% 13.10% 5.83%
Total 5.65% 11.21% 5.18%

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vermilion Energy $1.29 billion 2.40 $209.58 million $0.77 26.06
Total $209.36 billion 0.65 $11.45 billion $5.05 10.78

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

Insider and Institutional Ownership

50.1% of Vermilion Energy shares are held by institutional investors. Comparatively, 6.6% of Total shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Vermilion Energy pays an annual dividend of $2.04 per share and has a dividend yield of 10.2%. Total pays an annual dividend of $2.38 per share and has a dividend yield of 4.4%. Vermilion Energy pays out 264.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Total pays out 47.1% of its earnings in the form of a dividend. Total has raised its dividend for 2 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Vermilion Energy and Total, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vermilion Energy 0 4 4 0 2.50
Total 0 2 14 0 2.88

Vermilion Energy currently has a consensus price target of $35.33, indicating a potential upside of 76.05%. Total has a consensus price target of $51.30, indicating a potential downside of 5.79%. Given Vermilion Energy’s higher possible upside, equities analysts clearly believe Vermilion Energy is more favorable than Total.

Volatility and Risk

Vermilion Energy has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, Total has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Summary

Vermilion Energy beats Total on 9 of the 16 factors compared between the two stocks.

Vermilion Energy Company Profile

Vermilion Energy Inc. acquires, explores, develops, and produces petroleum and natural gas in Canada, France, the Netherlands, Germany, Ireland, Australia, the United States, and Central and Eastern Europe. It owns 80% interest in 544,500 net acres of developed land and 87% interest in 439,800 net acres of undeveloped land, and 397 net producing natural gas wells and 3,346 net producing oil wells; and 96% interest in 248,900 net acres of developed land and 92% interest in 251,800 net acres of undeveloped land in the Aquitaine and Paris Basins, and 337 net producing oil wells and 2 net producing gas wells. The company also owns 48% interest in 930,000 net acres of land and 103 net producing gas wells; 32,600 net acres of developed and 1,149,400 net acres of undeveloped land, and 105 net producing oil wells and 8 net producing natural gas wells; and 148,700 net acres of land and 118 net producing oil wells. In addition, it owns 20% interest in the offshore Corrib gas field; and 60% interest in the Wandoo field comprises 59,600 acres; and lands of 652,800 net acres, 242,500 net acres, and 2.35 million net acres. Further, the company has 181,664 barrels of oil equivalent (Mboe) of gross proved reserves and 284,476 Mboe of gross proved plus probable reserves; 43,466 Mboe of gross proved reserves and 63,918 Mboe of gross proved plus probable reserves; 11,802 Mboe of gross proved reserves and 22,196 Mboe of gross proved plus probable reserves; 12,991 Mboe of gross proved reserves and 25,735 Mboe of gross proved plus probable reserves; 13,093 Mboe of gross proved reserves and 20,575 Mboe of gross proved plus probable reserves; 9,668 Mboe of gross proved reserves and 14,480 Mboe of gross proved plus probable reserves; 25,147 Mboe of gross proved reserves and 56,214 Mboe of gross proved plus probable reserves; and 131 Mboe of gross proved reserves and 191 Mboe of gross proved plus probable reserves. The company was founded in 1994 and is headquartered in Calgary, Canada.

Total Company Profile

TOTAL S.A. operates as an integrated oil and gas company worldwide. The company operates through four segments: Exploration & Production; Gas, Renewables & Power; Refining & Chemicals; and Marketing & Services. The Exploration & Production segment is involved in exploration and production activities in approximately 50 countries, and produces oil or gas in approximately 30 countries. The Gas, Renewables & Power segment engages in the liquefied natural gas(LNG) production, shipping, trading, and regasification activities; trading of liquefied petroleum gas (LPG), petcoke and sulfur, and natural gas and electricity; transportation of natural gas; electricity production from natural gas, wind, solar, hydroelectric, and biogas sources; and energy storage activities. The Refining & Chemicals segment is involved in refining petrochemicals, including olefins and aromatics; and polymer derivatives, such as polyethylene, polypropylene, polystyrene, and hydrocarbon resins, as well as biomass conversion and elastomer processing. It also engages in trading and shipping crude oil and petroleum products. The Marketing & Services segment produces and sells lubricants; and supplies and markets petroleum products, including bulk fuel, aviation fuel, special fluids, LPG, bitumen, heavy fuels, and marine bunkers. It operates approximately 14,000 service stations. As of December 31, 2018, the company had 12,050 Mboe of combined proved reserves of oil and gas. TOTAL S.A. has a strategic partnership with Tellurian to develop the Driftwood LNG project located in Louisiana. The company was founded in 1924 and is headquartered in Courbevoie, France.

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