Canadian Natural Resources vs Suncor Energy Which Outperforms?

Canadian Natural Resources and Suncor Energy are two major players in the Canadian energy sector, both operating in the oil and gas industry. While both companies have a strong presence in the market, they have different approaches and strategies that impact their stock performances. Canadian Natural Resources focuses on production growth and operational efficiency, while Suncor Energy has a diversified portfolio and is known for its strong refining and marketing capabilities. Investors looking to invest in the energy sector should carefully evaluate the financials and outlook of both companies to make an informed decision.

Canadian Natural Resources or Suncor Energy?

When comparing Canadian Natural Resources and Suncor Energy, 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 Canadian Natural Resources and Suncor Energy.

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. Canadian Natural Resources has a dividend yield of 4.79%, while Suncor Energy has a dividend yield of 4.13%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Canadian Natural Resources reports a 5-year dividend growth of 28.64% year and a payout ratio of 54.28%. On the other hand, Suncor Energy reports a 5-year dividend growth of 13.42% year and a payout ratio of 36.86%.

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 Canadian Natural Resources P/E ratio at 13.25 and Suncor Energy's P/E ratio at 9.20. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Canadian Natural Resources P/B ratio is 2.57 while Suncor Energy's P/B ratio is 1.56.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Canadian Natural Resources has seen a 5-year revenue growth of 0.80%, while Suncor Energy's is 0.54%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Canadian Natural Resources's ROE at 19.37% and Suncor Energy's ROE at 17.35%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $33.68 for Canadian Natural Resources and $38.71 for Suncor Energy. Over the past year, Canadian Natural Resources's prices ranged from $29.45 to $41.29, with a yearly change of 40.18%. Suncor Energy's prices fluctuated between $29.45 and $41.95, with a yearly change of 42.44%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.