Bharat Petroleum vs Hindustan Petroleum Which Is Superior?

Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited are two of the largest oil and gas companies in India. Both companies are listed on the stock exchange and are considered blue-chip stocks in the energy sector. Investors interested in the oil and gas industry often compare the performance of BPCL and HPCL stocks to make informed investment decisions. Understanding the financials, market trends, and competitive landscape of both companies is crucial for potential investors looking to maximize their returns in the energy sector.

Bharat Petroleum or Hindustan Petroleum?

When comparing Bharat Petroleum and Hindustan Petroleum, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Bharat Petroleum and Hindustan Petroleum.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Bharat Petroleum has a dividend yield of 3.48%, while Hindustan Petroleum has a dividend yield of 5.1%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Bharat Petroleum reports a 5-year dividend growth of 3.55% year and a payout ratio of 0.00%. On the other hand, Hindustan Petroleum reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Bharat Petroleum P/E ratio at 9.84 and Hindustan Petroleum's P/E ratio at 20.88. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Bharat Petroleum P/B ratio is 1.67 while Hindustan Petroleum's P/B ratio is 1.91.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Bharat Petroleum has seen a 5-year revenue growth of 0.39%, while Hindustan Petroleum's is 0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Bharat Petroleum's ROE at 17.52% and Hindustan Petroleum's ROE at 9.09%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹301.30 for Bharat Petroleum and ₹406.05 for Hindustan Petroleum. Over the past year, Bharat Petroleum's prices ranged from ₹216.22 to ₹376.00, with a yearly change of 73.89%. Hindustan Petroleum's prices fluctuated between ₹239.13 and ₹457.15, with a yearly change of 91.17%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.