Shell vs TotalEnergies

Shell and TotalEnergies are major players in the oil and gas industry, with both companies having a global presence and significant market capitalization. Investors often compare the stocks of these two energy giants to determine which one offers better investment potential. Shell has a long history and strong brand recognition, while TotalEnergies has been making strategic moves towards renewable energy sources. Both companies face challenges in a shifting energy landscape, making the comparison between Shell and TotalEnergies stocks a matter of careful analysis and consideration.

Shell or TotalEnergies?

When comparing Shell and TotalEnergies, 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 TotalEnergies.

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 4.13%, while TotalEnergies has a dividend yield of 5.18%. 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 47.67%. On the other hand, TotalEnergies reports a 5-year dividend growth of 1.19% year and a payout ratio of 35.71%.

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 11.42 and TotalEnergies's P/E ratio at 7.20. 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 1.13 while TotalEnergies's P/B ratio is 1.30.

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 -0.04%, while TotalEnergies's is 0.28%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Shell's ROE at 9.81% and TotalEnergies's ROE at 18.15%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $65.97 for Shell and $64.58 for TotalEnergies. Over the past year, Shell's prices ranged from $60.34 to $74.61, with a yearly change of 23.65%. TotalEnergies's prices fluctuated between $62.59 and $74.97, with a yearly change of 19.78%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.