Sanchez Energy (OTCMKTS:SNEC) vs. Sasol (NYSE:SSL) Critical Analysis

Sasol (NYSE:SSL) and Sanchez Energy (OTCMKTS:SNEC) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Risk and Volatility

Sasol has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500. Comparatively, Sanchez Energy has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500.

Valuation and Earnings

This table compares Sasol and Sanchez Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sasol	$262.30 billion	0.01	-$2.37 billion	$2.27	1.51
Sanchez Energy	$1.06 billion	0.00	$85.21 million	N/A	N/A

Sanchez Energy has lower revenue, but higher earnings than Sasol.

Analyst Recommendations

This is a summary of current ratings for Sasol and Sanchez Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sasol	0	1	0	0	2.00
Sanchez Energy	0	0	0	0	0.00

Given Sanchez Energy’s higher probable upside, analysts clearly believe Sanchez Energy is more favorable than Sasol.

Insider and Institutional Ownership

1.2% of Sasol shares are held by institutional investors. Comparatively, 0.6% of Sanchez Energy shares are held by institutional investors. 1.0% of Sasol shares are held by insiders. Comparatively, 11.1% of Sanchez Energy shares are held 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.

Profitability

This table compares Sasol and Sanchez Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sasol	N/A	N/A	N/A
Sanchez Energy	2.22%	-18.15%	3.09%

About Sasol

Sasol Limited operates as a chemical and energy company in South Africa and internationally. It offers alumina, such as battery materials, catalyst supports, abrasives and polishing, and polymer additives; cobalt fischer-tropsch catalysts; carbon-based and recarburiser products; graphite electrodes; and mono-ethylene glycol and chlor-alkali products, monomers, mining chemicals and reagents, blends and hydrocarbons, methanol products, polymers, phenolics, and fertilizers. The company also provides linear alkyl benzene, sulfonate, macrogol/polyethylene glycol, ethanol, isopropyl, acetone, and MIBK and ethyl acetate products; and fatty alcohols, alkoxylates, ether sulfates, solvents, dispersants, diluents esters, alpha-hydroxy acids ester, waxes, diluents, guerbet alcohols, biosurfactants, C6-C20+ alcohols, ethoxylates, propoxylates, paraffins/isoparaffins, parafols, amines, alkylphenols, and sulfates. In addition, it offers alcohols, esters, ethers, carboxylic acids, surfactants, oil and water soluble polyglycols, formulation and surface modifiers, solvents and coalescents, wax cuts, blends and forms, FT hard waxes, blends, lubrication packages, nucleators, release agents, emulsifiers, wetting agents, tank-mix adjuvant components, fertilizer additives, and specialty solvents. Further, the company explores, develops, produces, markets, and distributes natural oil and gas, and associated products; markets fuels and lubricants; develops and implements GTL and CTL ventures; operates coal mines; trades and transports oil, petrochemicals, and chemical products and derivatives; and provides engineering, research and development, and technology transfer services. Sasol Limited was founded in 1950 and is based in Johannesburg, South Africa.

About Sanchez Energy

Sanchez Energy Corporation, an independent exploration and production company, focuses on the acquisition and development of onshore unconventional oil and natural gas resources in the United States. It engages in the horizontal development of resources from the Eagle Ford Shale in South Texas. It also holds an undeveloped acreage position in the Tuscaloosa Marine Shale (TMS) in Mississippi and Louisiana. As of December 31, 2018, the company had assembled approximately 271,000 net acres in the Eagle Ford Shale; and owned approximately 34,000 net acres in the TMS. Sanchez Energy Corporation was founded in 2011 and is headquartered in Houston, Texas.