Analyzing Shell (NYSE:SHEL) and Stratex Oil & Gas (OTCMKTS:STTX)

Shell (NYSE:SHEL) and Stratex Oil & Gas (OTCMKTS:STTX) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Institutional & Insider Ownership

28.6% of Shell shares are held by institutional investors. 1.0% of Shell shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Shell and Stratex Oil & Gas”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shell	$323.18 billion	0.64	$19.36 billion	$5.60	11.88
Stratex Oil & Gas	N/A	N/A	N/A	N/A	N/A

Shell has higher revenue and earnings than Stratex Oil & Gas.

Volatility & Risk

Shell has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Stratex Oil & Gas has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Shell and Stratex Oil & Gas, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shell	0	3	4	3	3.00
Stratex Oil & Gas	0	0	0	0	N/A

Shell presently has a consensus price target of $82.00, suggesting a potential upside of 23.25%. Given Shell’s higher probable upside, equities analysts plainly believe Shell is more favorable than Stratex Oil & Gas.

Profitability

This table compares Shell and Stratex Oil & Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shell	5.97%	14.56%	6.82%
Stratex Oil & Gas	N/A	N/A	N/A

Summary

Shell beats Stratex Oil & Gas on 9 of the 10 factors compared between the two stocks.

About Shell

Shell plc operates as an energy and petrochemical company Europe, Asia, Oceania, Africa, the United States, and Rest of the Americas. The company operates through Integrated Gas, Upstream, Marketing, Chemicals and Products, and Renewables and Energy Solutions segments. It explores for and extracts crude oil, natural gas, and natural gas liquids; markets and transports oil and gas; produces gas-to-liquids fuels and other products; and operates upstream and midstream infrastructure to deliver gas to market. The company also markets and trades natural gas, liquefied natural gas (LNG), crude oil, electricity, carbon-emission rights; and markets and sells LNG as a fuel for heavy-duty vehicles. In addition, it trades in and refines crude oil and other feed stocks, such as low-carbon fuels, lubricants, bitumen, sulphur, gasoline, diesel, aviation fuel, and marine fuel; produces and sells petrochemicals for industrial use; and manages oil sands activities. Further, the company produces base chemicals comprising ethylene, propylene, and aromatics, as well as intermediate chemicals, such as styrene monomer, propylene oxide, solvents, detergent alcohols, ethylene oxide, and ethylene glycol. Additionally, it generates electricity through wind and solar resources; produces and sells hydrogen; and provides 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, the United Kingdom.

About Stratex Oil & Gas

Stratex Oil & Gas Holdings, Inc., an independent energy company, focuses on the acquisition, exploitation, and development of crude oil in Kansas and Texas, as well as non-operated working interests in North Dakota, Montana, Utah, Colorado, and Kansas. The company is also involved in the sale of oil and gas. The company was formerly known as Poway Muffler and Brake, Inc. and changed its name to Stratex Oil & Gas Holdings, Inc. in May 2012. Stratex Oil & Gas Holdings, Inc. is based in Salt Lake City, Utah.