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 $101.7B against $32.0B — 3.2× the size. Ecopetrol S.A. trades at the lower P/E: 8.3× against 8.8×. Equinor ASA grew revenue faster over the last twelve months: 11.8% against −76.8%. Ecopetrol S.A. has the higher net margin (11.7% vs 9.71%) and the lower return on invested capital (9.16% vs 54.5%). Both pay a dividend; Ecopetrol S.A. yields more (4.16% vs 3.56%). Across the 23 metrics below, Equinor ASA leads on 12 and Ecopetrol S.A. on 11.

Valuation

Metric EC EQNR Oil & Gas Integrated median
P/E 8.26 8.84 8.84
P/S 0.99 0.83 1.10
P/B 1.50 2.25 1.43
Price to free cash flow 6.46 7.34 8.19
EV/EBITDA 4.73 1.99 4.43
EV/Sales 1.86 0.83 1.48
Earnings yield 12.11% 11.31% 9.76%
Free cash flow yield 15.47% 13.62% 7.35%

Profitability

Metric EC EQNR Oil & Gas Integrated median
Gross margin 36.64% 53.58% 39.93%
Operating margin 27.60% 32.26% 17.07%
Net margin 11.72% 9.71% 10.24%
Free cash flow margin 15.34% 11.34% 11.16%
Return on equity 0.00% 27.58% 14.86%
Return on assets 5.27% 8.34% 7.07%
Return on invested capital 9.16% 54.52% 12.85%

Growth

Metric EC EQNR Oil & Gas Integrated median
Revenue growth (TTM) (76.82%) 11.76% 13.45%
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 0.53 0.53
Current ratio 1.51 1.16 1.19
Net debt to EBITDA 2.26 0.18 0.80

Dividend

Metric EC EQNR Oil & Gas Integrated median
Dividend yield 4.16% 3.56% 3.83%
Payout ratio 0.34 0.32 0.34

Size

Metric EC EQNR Oil & Gas Integrated median
Market cap 31.95b 101.70b 47.17b

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