Financial Review: Neste Oyj (OTCMKTS:NTOIY) vs. World Kinect (NYSE:WKC)

Neste Oyj (OTCMKTS:NTOIY) and World Kinect (NYSE:WKC) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Institutional and Insider Ownership

0.0% of Neste Oyj shares are owned by institutional investors. Comparatively, 97.1% of World Kinect shares are owned by institutional investors. 2.9% of World Kinect shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Neste Oyj pays an annual dividend of $0.25 per share and has a dividend yield of 3.1%. World Kinect pays an annual dividend of $0.68 per share and has a dividend yield of 2.6%. Neste Oyj pays out 45.9% of its earnings in the form of a dividend. World Kinect pays out 73.1% 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. Neste Oyj is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current ratings and price targets for Neste Oyj and World Kinect, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neste Oyj	0	1	0	0	2.00
World Kinect	2	2	1	0	1.80

Neste Oyj currently has a consensus price target of $18.00, suggesting a potential upside of 126.99%. World Kinect has a consensus price target of $30.20, suggesting a potential upside of 15.49%. Given Neste Oyj’s stronger consensus rating and higher probable upside, equities analysts clearly believe Neste Oyj is more favorable than World Kinect.

Profitability

This table compares Neste Oyj and World Kinect’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neste Oyj	N/A	N/A	N/A
World Kinect	0.29%	6.26%	1.70%

Valuation & Earnings

This table compares Neste Oyj 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
Neste Oyj	N/A	N/A	N/A	$0.54	14.80
World Kinect	$44.41 billion	0.04	$52.90 million	$0.93	28.12

World Kinect has higher revenue and earnings than Neste Oyj. Neste Oyj is trading at a lower price-to-earnings ratio than World Kinect, indicating that it is currently the more affordable of the two stocks.

Summary

World Kinect beats Neste Oyj on 9 of the 13 factors compared between the two stocks.

About Neste Oyj

Neste Oyj provides renewable diesel and sustainable aviation fuel in Finland, and other Nordic countries, Baltic Rim, other European countries, North and South America, and internationally. The company operates in four segments: Renewable Products, Oil Products, Marketing & Services, and Others. The Renewable Products segment produces, markets, and sells renewable diesel, sustainable aviation fuel, renewable solvents, and feedstock for bioplastics to wholesale markets. The Oil Products segment produces, markets, and sells diesel, gasoline, aviation and marine fuels, light and heavy fuel oils, and gasoline components, as well as special fuels, such as small-engine gasoline, solvents, liquid gases, and bitumen. This segment serves retailers and distributors, oil majors and trading companies, petrochemicals companies, and companies marketing lubricants and solvents, as well as road transportation, non-road uses, aviation and marine sectors. The Marketing & Services segment markets and sells cleaner fuels and oil products, and associated services to private motorists, transport companies, customers in aviation, shipping, industrial and agricultural sectors, municipalities, farmers, and heating oil customers through a network of service stations, as well as direct sales and distributors. The Others segment offers engineering solutions. The company was formerly known as Neste Oil Oyj and changed its name to Neste Oyj in June 2015. Neste Oyj was founded in 1948 and is headquartered in Espoo, Finland.

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.