Ecopetrol S.A. (EC) vs Equinor ASA (EQNR)

Ecopetrol S.A. and Equinor ASA are both Oil & Gas Integrated companies. Equinor ASA is the larger, with a market value of $107.4B against $36.4B — 3.0× the size. Equinor ASA trades at the lower P/E: 12.8× against 14.2×. Equinor ASA grew revenue faster over the last twelve months: 5.78% against −76.8%. Ecopetrol S.A. has the higher net margin (11.7% vs 7.92%) and the lower return on invested capital (9.16% vs 46.6%). Both pay a dividend; Ecopetrol S.A. yields more (3.69% vs 3.24%). Across the 23 metrics below, Equinor ASA leads on 14 and Ecopetrol S.A. on 9.

Valuation

Metric EC EQNR Oil & Gas Integrated median
P/E 14.21 12.80 12.62
P/S 1.14 1.00 1.29
P/B 1.72 2.65 1.62
Price to free cash flow 7.41 9.32 10.23
EV/EBITDA 5.10 2.58 4.86
EV/Sales 2.00 1.00 1.52
Earnings yield 7.04% 7.81% 7.04%
Free cash flow yield 13.49% 10.73% 6.09%

Profitability

Metric EC EQNR Oil & Gas Integrated median
Gross margin 36.64% 51.16% 39.18%
Operating margin 27.60% 28.44% 14.90%
Net margin 11.72% 7.92% 8.88%
Free cash flow margin 15.34% 10.72% 9.61%
Return on equity 0.00% 21.28% 12.22%
Return on assets 5.27% 6.47% 6.47%
Return on invested capital 9.16% 46.59% 10.61%

Growth

Metric EC EQNR Oil & Gas Integrated median
Revenue growth (TTM) (76.82%) 5.78% 5.63%
EPS growth (last fiscal year) (24.10%) (37.62%) (14.54%)
Revenue growth, 5-year CAGR (18.18%) 18.37% 12.04%
Net income growth, 5-year CAGR 0.34% 0.00% 0.00%

Health

Metric EC EQNR Oil & Gas Integrated median
Debt to equity 0.96 0.56 0.55
Current ratio 1.51 1.18 1.18
Net debt to EBITDA 2.26 0.18 0.80

Dividend

Metric EC EQNR Oil & Gas Integrated median
Dividend yield 3.69% 3.24% 3.24%
Payout ratio 0.52 0.41 0.52

Size

Metric EC EQNR Oil & Gas Integrated median
Market cap 36.39b 107.39b 58.96b

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