Comparing Koninklijke Vopak (OTCMKTS:VOPKY) & Brenntag (OTCMKTS:BNTGY)

Koninklijke Vopak (OTCMKTS:VOPKY) and Brenntag (OTCMKTS:BNTGY) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Risk & Volatility

Koninklijke Vopak has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Brenntag has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Profitability

This table compares Koninklijke Vopak and Brenntag’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Koninklijke Vopak	32.71%	12.81%	6.50%
Brenntag	3.93%	14.38%	6.09%

Analyst Recommendations

This is a breakdown of current ratings for Koninklijke Vopak and Brenntag, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Koninklijke Vopak	0	0	0	0	N/A
Brenntag	0	1	0	0	2.00

Earnings and Valuation

This table compares Koninklijke Vopak and Brenntag’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Koninklijke Vopak	$1.54 billion	N/A	$493.20 million	$3.97	11.38
Brenntag	$18.20 billion	0.59	$773.74 million	$0.94	15.87

Brenntag has higher revenue and earnings than Koninklijke Vopak. Koninklijke Vopak is trading at a lower price-to-earnings ratio than Brenntag, indicating that it is currently the more affordable of the two stocks.

Dividends

Koninklijke Vopak pays an annual dividend of $1.30 per share and has a dividend yield of 2.9%. Brenntag pays an annual dividend of $0.01 per share and has a dividend yield of 0.1%. Koninklijke Vopak pays out 32.7% of its earnings in the form of a dividend. Brenntag pays out 1.1% 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.

Summary

Brenntag beats Koninklijke Vopak on 6 of the 10 factors compared between the two stocks.

About Koninklijke Vopak

Koninklijke Vopak N.V., an independent tank storage company, stores and handles liquid chemicals, gases, and oil products to the energy and manufacturing markets worldwide. The company operates LPG and chemical gas, industrial, chemical, and oil terminals; and owns and operates specialized facilities consisting of tanks, jetties, truck loading stations, and pipelines. It stores and handles chemicals, such as methanol, xylenes, styrene, alpha olefins, and mono-ethylene glycol; gas, including LNG, LPG, ethylene, butadiene, and ammonia; oil products consisting of crude oil, fuel oil, diesel, jet fuel, gasoline, and naphtha; and vegoils and biofuels comprising ethanol, biodiesel, and sustainable aviation fuel. In addition, the company is involved in the development of infrastructure solutions within ports for low-carbon and renewable hydrogen, CO2, long-duration energy storage, and sustainable fuels and feedstocks. Further, it operates 76 terminals in 23 countries with a storage capacity of 35.2 million cubic meters. It serves producers, manufacturers, distributors, governments, traders, and chemical and energy companies. The company was founded in 1616 and is headquartered in Rotterdam, the Netherlands.

About Brenntag

Brenntag SE purchases and supplies various industrial and specialty chemicals, and ingredients in Germany, Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates in two segments, Brenntag Essentials and Brenntag Specialties. It provides just-in-time delivery, product mixing, blending, repackaging, inventory management, and drum return handling. The company serves customers in various end-market industries, including nutrition, pharma, personal care, water treatment, and lubricants; and home, industrial, and institutional markets, as well as coatings and constructions, polymers, and rubber industries. The company was founded in 1874 and is based in Essen, Germany.