Shell (NYSE:SHEL – Get Free Report) and Indonesia Energy (NYSE:INDO – Get Free Report) are both Oil/Energy companies, but which stock is the better buy? We compare the two companies based on profitability, dividends, earnings, risk, valuation, analyst recommendations and strength of institutional holdings.
Profitability
This table compares the net profit margins, return on equity and return on assets of Shell and Indonesia Energy.
Net income | Return on Equity | Return on Assets | |
shell | 5.83% | 13.83% | 6.44% |
Indonesia Energy | N/A | N/A | N/A |
Revenue and Ratings
This table compares the revenue, earnings per share and valuation of Shell and Indonesia Energy.
Earnings | Price/Sales Ratio | Net income | Earnings per Share | Price Earnings Ratio | |
shell | $323.18 billion | 0.72 | $19.36 billion | $5.42 | 13.48 |
Indonesia Energy | $3.53 million | 7.56 | -$2.64 million | N/A | N/A |
Shell has higher revenues and profits than Indonesia Energy.
Institutional and insider ownership
28.6% of Shell shares are owned by institutional investors. In comparison, 0.5% of Indonesia Energy shares are owned by institutional investors. 1.0% of Shell shares are owned by insiders. In comparison, 71.6% of Indonesia Energy shares are owned by insiders. Strong institutional ownership suggests that hedge funds, endowments and large asset managers believe that the company will outperform the market in the long term.
Analyst Recommendations
Here’s a summary of Shell and Indonesia Energy’s current valuations and target prices as reported by MarketBeat.
Sell rating | Ratings on hold | Purchase Rating | Strong Buy Rating | Evaluation score | |
shell | 0 | 1 | Five | 0 | 2.83 |
Indonesia Energy | 0 | 0 | 0 | 0 | N/A |
Shell’s current consensus price target is $85.00, indicating an upside potential of 16.31%. Given Shell’s higher upside potential, analysts clearly consider Shell a better bet than Indonesia Energy.
Volatility and Risk
Shell’s beta is 0.59, meaning its stock price is 41% less volatile than the S&P 500. In comparison, Indonesia Energy’s beta is 0.03, meaning its stock price is 97% less volatile than the S&P 500.
summary
Shell outperforms Indonesia Energy on nine of the 11 factors we compare the two stocks on.
About Shell
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Shell is an energy and petrochemical company operating in Europe, Asia, Oceania, Africa, the United States and the rest of the Americas. The company operates through its Integrated Gas, Upstream, Marketing, Chemicals, Renewables and Energy Solutions segments. It explores for and extracts crude oil, natural gas and natural gas liquids, sells and transports oil and gas, produces gas-to-liquid fuels and other products, and operates upstream and midstream infrastructure to deliver gas to market. The company also sells and trades natural gas, liquefied natural gas (LNG), crude oil, electricity and carbon emission rights, and sells and markets LNG as a fuel for heavy vehicles. In addition, the company also trades and refines crude oil and other feedstocks such as low-carbon fuels, lubricants, bitumen, sulfur, gasoline, diesel, aviation fuel and marine fuel, produces and sells industrial petrochemical products, and manages its oil sands operations. In addition, the company produces basic chemicals consisting of ethylene, propylene and aromatics, and intermediate chemicals such as styrene monomer, propylene oxide, solvents, detergent alcohol, ethylene oxide and ethylene glycol. Additionally, it also provides electricity generation from wind and solar resources, the production and sale of hydrogen, and 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, UK.
Indonesia Energy
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Indonesia Energy Corporation Limited operates as an oil and gas exploration and production company in Indonesia. The company holds interests in Kuru Block, a production block with an area of 258 square kilometers and proven oil reserves of 2.06 million barrels located northwest of Pendopo, Pali District, South Sumatra, and Citarum Block, an exploration block with an area of 3,924.67 square kilometers located onshore West Java. The company was incorporated in 2018 and is headquartered in Jakarta, Indonesia. Indonesia Energy Corporation Limited is a subsidiary of Madelic Holding Limited.
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