Suncor Energy (NYSE:SU – Get Free Report) and World Kinect (NYSE:WKC – Get Free Report) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.
Profitability
This table compares Suncor Energy and World Kinect’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Suncor Energy | 15.62% | 20.05% | 10.06% |
| World Kinect | -0.43% | 11.24% | 2.40% |
Analyst Recommendations
This is a summary of current ratings and target prices for Suncor Energy and World Kinect, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Suncor Energy | 0 | 3 | 7 | 1 | 2.82 |
| World Kinect | 2 | 1 | 0 | 0 | 1.33 |
Institutional and Insider Ownership
67.4% of Suncor Energy shares are held by institutional investors. Comparatively, 97.1% of World Kinect shares are held by institutional investors. 1.0% of Suncor Energy shares are held by company insiders. Comparatively, 3.8% of World Kinect shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Risk & Volatility
Suncor Energy has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, World Kinect has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.
Valuation and Earnings
This table compares Suncor Energy and World Kinect”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Suncor Energy | $35.29 billion | 2.25 | $4.24 billion | $5.43 | 12.52 |
| World Kinect | $36.92 billion | 0.05 | -$614.40 million | ($3.21) | -10.96 |
Suncor Energy has higher earnings, but lower revenue than World Kinect. World Kinect is trading at a lower price-to-earnings ratio than Suncor Energy, indicating that it is currently the more affordable of the two stocks.
Dividends
Suncor Energy pays an annual dividend of $1.73 per share and has a dividend yield of 2.5%. World Kinect pays an annual dividend of $0.92 per share and has a dividend yield of 2.6%. Suncor Energy pays out 31.9% of its earnings in the form of a dividend. World Kinect pays out -28.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Suncor Energy has raised its dividend for 4 consecutive years and World Kinect has raised its dividend for 6 consecutive years. World Kinect is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Suncor Energy beats World Kinect on 11 of the 18 factors compared between the two stocks.
About Suncor Energy
Suncor Energy Inc. operates as an integrated energy company in Canada, the United States, and internationally. It operates through Oil Sands; Exploration and Production; and Refining and Marketing segments. The Oil Sands segment explores, develops, and produces bitumen, synthetic crude oil, and related products. This segment also engages in oil sands mining. The Exploration and Production segment is involved in offshore operations in the East Coast of Canada; and marketing and risk management of crude oil and natural gas. The Refining and Marketing segment engages in the refining of crude oil products; and distribution, marketing, transportation, and risk management of refined and petrochemical products, and other purchased products through the retail and wholesale networks. This segment is also involved in the trading of crude oil, refined products, natural gas, and power. The company was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in April 1997. Suncor Energy Inc. was founded in 1917 and is headquartered in Calgary, Canada. Suncor Energy Inc.
About World Kinect
World Kinect Corporation operates as an energy management company in the United States, the Americas, Europe, the Middle East, Africa, and the Asia Pacific. This segment also offers fuel management, price risk management, ground handling, dispatch services, and trip planning services, such as flight planning and scheduling, weather reports and overflight permits; payment and processing services; and operates a web-based marketplace platform. The Land segment offers fuel, lubricants, heating oil, and related products and services to retail petroleum operators, as well as industrial, commercial, residential and government customers. This segment also provides sustainability solutions, such as renewable fuel products, carbon management, and renewable energy solutions; distributes fuel under long-term contracts to branded and unbranded distributors, convenience stores, and retail fuel outlets operated by third parties; distributes heating oil and unbranded fuel; and transportation logistics. The Marine segment markets fuel, lubricants, and related products and services to international container, dry bulk and tanker fleets, commercial cruise lines, yachts and time charter operators, offshore rig owners and operators, the U.S. and foreign governments, and other fuel suppliers. This segment also offers marine fuel-related services include management services to procurement of fuel, price risk management, cost control, quality control, and claims management services; and engages in the fueling of vessels, and transportation and delivery of fuel and fuel-related products. The company was formerly known as World Fuel Services Corporation and changed its name to World Kinect Corporation in June 2023. World Kinect Corporation was incorporated in 1984 and is headquartered in Miami, Florida.
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