Shell (NYSE:SHEL) & ZaZa Energy (OTCMKTS:ZAZA) Financial Comparison

ZaZa Energy (OTCMKTS:ZAZA) and Shell (NYSE:SHEL) are both oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of current ratings for ZaZa Energy and Shell, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZaZa Energy	0	0	0	0	N/A
Shell	0	2	3	0	2.60

Shell has a consensus price target of $79.67, indicating a potential upside of 12.49%.

Profitability

This table compares ZaZa Energy and Shell’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZaZa Energy	N/A	N/A	N/A
Shell	5.83%	13.83%	6.44%

Institutional and Insider Ownership

28.6% of Shell shares are owned by institutional investors. 56.9% of ZaZa Energy shares are owned by insiders. Comparatively, 1.0% of Shell shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares ZaZa Energy and Shell’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZaZa Energy	N/A	N/A	N/A	N/A	N/A
Shell	$302.14 billion	0.75	$19.36 billion	$5.42	13.07

Shell has higher revenue and earnings than ZaZa Energy.

Volatility and Risk

ZaZa Energy has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Shell has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.

Summary

Shell beats ZaZa Energy on 6 of the 8 factors compared between the two stocks.

About ZaZa Energy

ZaZa Energy Corporation, an independent oil and gas company, focuses on the exploration and production of unconventional and conventional oil and gas assets in the United States. The company's properties include the Eagle Ford East Trend comprising approximately 41,000 net acres in Houston, Leon, Madison, Grimes, Walker, Trinity, and Montgomery counties in East Texas; and Eagle Ford Trend covering approximately 3,700 net acres located in DeWitt and Lavaca counties in South Texas. ZaZa Energy Corporation is headquartered in Houston, Texas.

About Shell

Shell plc operates as an energy and petrochemical company Europe, Asia, Oceania, Africa, the United States, and Rest of the Americas. The company operates through Integrated Gas, Upstream, Marketing, Chemicals and Products, and Renewables and Energy Solutions segments. It explores for and extracts crude oil, natural gas, and natural gas liquids; markets and transports oil and gas; produces gas-to-liquids fuels and other products; and operates upstream and midstream infrastructure to deliver gas to market. The company also markets and trades natural gas, liquefied natural gas (LNG), crude oil, electricity, carbon-emission rights; and markets and sells LNG as a fuel for heavy-duty vehicles. In addition, it trades in and refines crude oil and other feed stocks, such as low-carbon fuels, lubricants, bitumen, sulphur, gasoline, diesel, aviation fuel, and marine fuel; produces and sells petrochemicals for industrial use; and manages oil sands activities. Further, the company produces base chemicals comprising ethylene, propylene, and aromatics, as well as intermediate chemicals, such as styrene monomer, propylene oxide, solvents, detergent alcohols, ethylene oxide, and ethylene glycol. Additionally, it generates electricity through wind and solar resources; produces and sells hydrogen; and provides electric vehicle charging services. The company was formerly known as Royal Dutch Shell plc and changed its name to Shell plc in January 2022. Shell plc was founded in 1907 and is headquartered in London, the United Kingdom.