Shell vs Sunoco Which Is Stronger?

Shell and Sunoco are two major players in the energy industry, each with its own strengths and weaknesses. Shell, a multinational corporation with a diverse portfolio of assets, has seen steady growth in recent years thanks to its focus on innovation and sustainability. On the other hand, Sunoco, a smaller American company, has been affected by fluctuations in oil prices and competition from larger companies. Investors looking to invest in energy stocks must consider the unique factors influencing Shell and Sunoco's performance in order to make informed decisions.

Shell or Sunoco?

When comparing Shell 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 Shell 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. Shell has a dividend yield of 4.33%, while Sunoco has a dividend yield of 6.5%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Shell reports a 5-year dividend growth of -8.03% year and a payout ratio of 55.99%. 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 Shell P/E ratio at 12.71 and Sunoco's P/E ratio at 13.85. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Shell P/B ratio is 1.06 while Sunoco's P/B ratio is 1.74.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Shell has seen a 5-year revenue growth of 0.00%, while Sunoco's is 0.36%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Shell's ROE at 8.38% and Sunoco's ROE at 19.76%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $63.44 for Shell and $53.22 for Sunoco. Over the past year, Shell's prices ranged from $60.34 to $74.61, with a yearly change of 23.65%. 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.