Eni SpA (E) vs Ecopetrol S.A. (EC)

Eni SpA and Ecopetrol S.A. are both Oil & Gas Integrated companies. Eni SpA is the larger, with a market value of $80.2B against $33.7B — 2.4× the size. Ecopetrol S.A. trades at the lower P/E: 13.2× against 13.7×. Eni SpA grew revenue faster over the last twelve months: 4.16% against −83.7%. Ecopetrol S.A. has the higher net margin (8.76% vs 6.30%) and the higher return on invested capital (8.20% vs 3.00%). Both pay a dividend; Ecopetrol S.A. yields more (18.0% vs 6.32%). Across the 23 metrics below, Ecopetrol S.A. leads on 13 and Eni SpA on 10.

Valuation

Metric E EC Oil & Gas Integrated median
P/E 13.74 13.19 11.88
P/S 0.81 1.43 1.20
P/B 1.21 1.60 1.56
Price to free cash flow 15.39 7.76 9.74
EV/EBITDA 8.17 6.26 4.94
EV/Sales 1.01 2.24 1.57
Earnings yield 7.28% 7.58% 7.58%
Free cash flow yield 6.50% 12.89% 6.71%

Profitability

Metric E EC Oil & Gas Integrated median
Gross margin 19.25% 31.44% 39.18%
Operating margin 4.15% 22.29% 14.90%
Net margin 6.30% 8.76% 8.76%
Free cash flow margin 5.29% 18.44% 9.61%
Return on equity 9.80% 2.86% 12.22%
Return on assets 3.82% 1.09% 6.47%
Return on invested capital 3.00% 8.20% 10.61%

Growth

Metric E EC Oil & Gas Integrated median
Revenue growth (TTM) 4.16% (83.68%) 5.63%
EPS growth (last fiscal year) 2.92% (24.10%) —
Revenue growth, 5-year CAGR 13.01% (18.18%) 12.04%
Net income growth, 5-year CAGR 0.00% 0.34% 0.00%

Health

Metric E EC Oil & Gas Integrated median
Debt to equity 0.55 1.02 0.55
Current ratio 1.23 1.55 1.18
Net debt to EBITDA 1.09 2.26 0.80

Dividend

Metric E EC Oil & Gas Integrated median
Dividend yield 6.32% 18.03% 5.01%
Payout ratio 0.33 0.39 0.29

Size

Metric E EC Oil & Gas Integrated median
Market cap 80.20b 33.65b 51.12b

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