Analyzing VOC Energy Trust (NYSE:VOC) & Scorpio Tankers (NYSE:STNG)

Scorpio Tankers (NYSE:STNG) and VOC Energy Trust (NYSE:VOC) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Earnings & Valuation

This table compares Scorpio Tankers and VOC Energy Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scorpio Tankers	$938.22 million	4.62	$344.29 million	$16.01	5.37
VOC Energy Trust	$7.52 million	7.59	$7.39 million	$0.41	8.20

Scorpio Tankers has higher revenue and earnings than VOC Energy Trust. Scorpio Tankers is trading at a lower price-to-earnings ratio than VOC Energy Trust, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

54.6% of Scorpio Tankers shares are owned by institutional investors. 7.3% of Scorpio Tankers shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Scorpio Tankers and VOC Energy Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scorpio Tankers	1	5	5	0	2.36
VOC Energy Trust	1	0	0	0	1.00

Scorpio Tankers currently has a consensus price target of $91.57, suggesting a potential upside of 6.48%. Given Scorpio Tankers’ stronger consensus rating and higher probable upside, analysts plainly believe Scorpio Tankers is more favorable than VOC Energy Trust.

Dividends

Scorpio Tankers pays an annual dividend of $1.80 per share and has a dividend yield of 2.1%. VOC Energy Trust pays an annual dividend of $1.12 per share and has a dividend yield of 33.3%. Scorpio Tankers pays out 11.2% of its earnings in the form of a dividend. VOC Energy Trust pays out 273.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Scorpio Tankers has increased its dividend for 2 consecutive years.

Volatility & Risk

Scorpio Tankers has a beta of -0.22, suggesting that its share price is 122% less volatile than the S&P 500. Comparatively, VOC Energy Trust has a beta of 0.14, suggesting that its share price is 86% less volatile than the S&P 500.

Profitability

This table compares Scorpio Tankers and VOC Energy Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Scorpio Tankers	67.16%	16.43%	13.14%
VOC Energy Trust	91.51%	68.92%	68.92%

Summary

Scorpio Tankers beats VOC Energy Trust on 10 of the 17 factors compared between the two stocks.

About Scorpio Tankers

Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of crude oi and refined petroleum products in the shipping markets worldwide. As of March 21, 2024, its fleet consisted of 110 owned and leases financed tanker, including 39 LR2, 57 MR, and 14 Handymax with a weighted average age of approximately 8.1 years. Scorpio Tankers Inc. was incorporated in 2009 and is headquartered in Monaco.

About VOC Energy Trust

VOC Energy Trust acquires and holds a term net profits interest of the net proceeds from production and sale of the interests in oil and natural gas properties in the states of Kansas and Texas. The company has an 80% term net profits interest of the net proceeds on the underlying properties. As of December 31, 2021, its underlying properties had interests in 452.5 net producing wells and 51,147.2 net acres. VOC Energy Trust was incorporated in 2010 and is based in Houston, Texas.