BP p.l.c. (BP) vs Equinor ASA (EQNR)

BP p.l.c. and Equinor ASA are both Oil & Gas Integrated companies. BP p.l.c. is the larger, with a market value of $114.5B against $102.3B — 1.1× the size. Equinor ASA trades at the lower P/E: 11.5× against 21.1×. BP p.l.c. grew revenue faster over the last twelve months: 14.9% against 5.78%. Equinor ASA has the higher net margin (7.92% vs 2.46%) and the higher return on invested capital (46.6% vs 15.1%). Both pay a dividend; Equinor ASA yields more (9.74% vs 5.01%). Across the 22 metrics below, Equinor ASA leads on 15 and BP p.l.c. on 7.

Valuation

Metric BP EQNR Oil & Gas Integrated median
P/E 21.07 11.50 11.88
P/S 0.52 0.90 1.20
P/B 1.51 2.38 1.56
Price to free cash flow 6.70 8.37 9.74
EV/EBITDA 3.26 2.32 4.94
EV/Sales 0.58 0.90 1.57
Earnings yield 4.75% 8.70% 7.58%
Free cash flow yield 14.93% 11.95% 6.71%

Profitability

Metric BP EQNR Oil & Gas Integrated median
Gross margin 29.15% 51.16% 39.18%
Operating margin 9.80% 28.44% 14.90%
Net margin 2.46% 7.92% 8.76%
Free cash flow margin 7.83% 10.72% 9.61%
Return on equity 7.29% 21.28% 12.22%
Return on assets 1.87% 6.47% 6.47%
Return on invested capital 15.06% 46.59% 10.61%

Growth

Metric BP EQNR Oil & Gas Integrated median
Revenue growth (TTM) 14.85% 5.78% 5.63%
EPS growth (last fiscal year) (85.71%) (37.62%) —
Revenue growth, 5-year CAGR 12.04% 18.37% 12.04%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BP EQNR Oil & Gas Integrated median
Debt to equity 0.76 0.56 0.55
Current ratio 1.27 1.18 1.18
Net debt to EBITDA 0.53 0.18 0.80

Dividend

Metric BP EQNR Oil & Gas Integrated median
Dividend yield 5.01% 9.74% 5.01%
Payout ratio 0.25 0.12 0.29

Size

Metric BP EQNR Oil & Gas Integrated median
Market cap 114.45b 102.28b 51.12b

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