BP vs Sunoco Which Is Superior?

BP and Sunoco are two prominent companies in the oil and gas industry, each with their own unique strengths and weaknesses. BP, a global energy giant, has a diverse portfolio that includes oil and gas exploration, production, refining, and distribution. Sunoco, on the other hand, is a regional company focused on refining and marketing petroleum products in the United States. Both companies have experienced fluctuations in their stock prices due to market conditions, regulatory changes, and geopolitical events. Investors looking to capitalize on the energy sector should carefully analyze the financial health and growth potential of BP and Sunoco stocks before making investment decisions.

BP or Sunoco?

When comparing BP and Sunoco, 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 BP and Sunoco.

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. BP has a dividend yield of 7.93%, while Sunoco has a dividend yield of 9.94%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. BP reports a 5-year dividend growth of -7.33% year and a payout ratio of 182.37%. On the other hand, Sunoco reports a 5-year dividend growth of 0.30% year and a payout ratio of 114.12%.

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 BP P/E ratio at 29.08 and Sunoco's P/E ratio at 13.54. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. BP P/B ratio is 1.22 while Sunoco's P/B ratio is 1.70.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, BP has seen a 5-year revenue growth of -0.19%, while Sunoco's is 0.36%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with BP's ROE at 3.99% and Sunoco's ROE at 19.76%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $28.83 for BP and $51.62 for Sunoco. Over the past year, BP's prices ranged from $27.82 to $40.40, with a yearly change of 45.22%. Sunoco's prices fluctuated between $49.45 and $64.89, with a yearly change of 31.22%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.