Hindustan Petroleum vs Bharat Petroleum Which Is More Favorable?

Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL) are two major players in the Indian oil and gas industry. Both companies operate in the downstream sector, with a focus on refining, distribution, and marketing of petroleum products. Investors interested in the energy sector often compare the performance of HPCL and BPCL stocks to make informed investment decisions. This analysis typically considers factors such as profitability, market share, government policies, and overall industry trends.

Hindustan Petroleum or Bharat Petroleum?

When comparing Hindustan Petroleum and Bharat 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 Hindustan Petroleum and Bharat 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. Hindustan Petroleum has a dividend yield of 5.1%, while Bharat Petroleum has a dividend yield of 3.48%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Hindustan Petroleum reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Bharat Petroleum reports a 5-year dividend growth of 3.55% 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 Hindustan Petroleum P/E ratio at 20.88 and Bharat Petroleum's P/E ratio at 9.84. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Hindustan Petroleum P/B ratio is 1.91 while Bharat Petroleum's P/B ratio is 1.67.

Growth Investors:

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

Retail Investors:

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