Imperial Oil vs Suncor Energy Which Is More Favorable?

Imperial Oil and Suncor Energy are two of the largest energy companies in Canada, both with significant holdings in the oil and gas sector. Investors looking to capitalize on the fluctuations in the energy market may find these two stocks to be attractive options. While Imperial Oil has a long-standing history and strong performance track record, Suncor Energy has shown innovation and growth potential in recent years. By comparing their financials, market trends, and future prospects, investors can make informed decisions on which stock may be the better investment choice for their portfolios.

Imperial Oil or Suncor Energy?

When comparing Imperial Oil 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 Imperial Oil 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. Imperial Oil has a dividend yield of 2.59%, while Suncor Energy has a dividend yield of 4.36%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Imperial Oil reports a 5-year dividend growth of 18.73% year and a payout ratio of 24.52%. On the other hand, Suncor Energy reports a 5-year dividend growth of 5.52% year and a payout ratio of 34.85%.

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 Imperial Oil P/E ratio at 10.45 and Suncor Energy's P/E ratio at 8.37. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Imperial Oil P/B ratio is 2.18 while Suncor Energy's P/B ratio is 1.49.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Imperial Oil has seen a 5-year revenue growth of 1.14%, while Suncor Energy's is 0.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Imperial Oil's ROE at 21.23% and Suncor Energy's ROE at 18.10%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $67.91 for Imperial Oil and $37.15 for Suncor Energy. Over the past year, Imperial Oil's prices ranged from $54.58 to $80.17, with a yearly change of 46.89%. Suncor Energy's prices fluctuated between $30.89 and $41.95, with a yearly change of 35.80%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.