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 $124.8B against $107.4B — 1.2× the size. Equinor ASA trades at the lower P/E: 12.8× against 23.9×. 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; BP p.l.c. yields more (4.02% vs 3.24%). Across the 22 metrics below, Equinor ASA leads on 14 and BP p.l.c. on 8.

Valuation

Metric BP EQNR Oil & Gas Integrated median
P/E 23.91 12.80 12.62
P/S 0.59 1.00 1.29
P/B 1.72 2.65 1.62
Price to free cash flow 7.60 9.32 10.23
EV/EBITDA 3.65 2.58 4.86
EV/Sales 0.65 1.00 1.52
Earnings yield 4.18% 7.81% 7.04%
Free cash flow yield 13.16% 10.73% 6.09%

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% 8.88%
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%) (14.54%)
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 4.02% 3.24% 3.24%
Payout ratio 0.98 0.41 0.52

Size

Metric BP EQNR Oil & Gas Integrated median
Market cap 124.76b 107.39b 58.96b

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