Suncor Energy vs Imperial Oil Which Is Superior?

Suncor Energy and Imperial Oil are two of the largest players in the Canadian oil and gas industry, with both companies competing for market share and striving to maximize shareholder value. Suncor Energy is known for its integrated operations, including oil sands production, refining, and marketing, while Imperial Oil focuses primarily on upstream exploration and production. Investors looking to add energy stocks to their portfolio may consider comparing the performance and growth potential of these two industry stalwarts.

Suncor Energy or Imperial Oil?

When comparing Suncor Energy and Imperial Oil, 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 Suncor Energy and Imperial Oil.

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. Suncor Energy has a dividend yield of 4.41%, while Imperial Oil has a dividend yield of 2.62%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Suncor Energy reports a 5-year dividend growth of 5.52% year and a payout ratio of 34.85%. On the other hand, Imperial Oil reports a 5-year dividend growth of 18.73% year and a payout ratio of 24.52%.

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 Suncor Energy P/E ratio at 8.29 and Imperial Oil's P/E ratio at 10.33. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Suncor Energy P/B ratio is 1.47 while Imperial Oil's P/B ratio is 2.15.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $36.53 for Suncor Energy and $66.86 for Imperial Oil. Over the past year, Suncor Energy's prices ranged from $30.89 to $41.95, with a yearly change of 35.80%. Imperial Oil's prices fluctuated between $54.58 and $80.17, with a yearly change of 46.89%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.