Contrasting Sasol (NYSE:SSL) & Golar LNG (NASDAQ:GLNG)

Sasol (NYSE:SSL) and Golar LNG (NASDAQ:GLNG) are both mid-cap energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.

Risk & Volatility

Sasol has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Golar LNG has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500.

Profitability

This table compares Sasol and Golar LNG’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
Golar LNG	1.04%	6.82%	3.98%

Institutional & Insider Ownership

1.2% of Sasol shares are owned by institutional investors. Comparatively, 92.2% of Golar LNG shares are owned by institutional investors. 1.0% of Sasol shares are owned by company insiders. Comparatively, 0.0% of Golar LNG shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Sasol and Golar LNG”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sasol	$14.72 billion	0.24	-$2.37 billion	$2.27	2.38
Golar LNG	$260.37 million	16.23	$50.84 million	$0.03	1,347.67

Golar LNG has lower revenue, but higher earnings than Sasol. Sasol is trading at a lower price-to-earnings ratio than Golar LNG, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Sasol and Golar LNG, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sasol	0	1	0	0	2.00
Golar LNG	0	0	4	2	3.33

Golar LNG has a consensus target price of $53.00, suggesting a potential upside of 31.09%. Given Golar LNG’s stronger consensus rating and higher possible upside, analysts clearly believe Golar LNG is more favorable than Sasol.

Summary

Golar LNG beats Sasol on 11 of the 15 factors compared between the two stocks.

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 Golar LNG

Golar LNG Limited designs, converts, owns, and operates marine infrastructure for the liquefaction of natural gas. The company operates through three segments: FLNG, Corporate and Other, and Shipping. It engages in the regasification, storage, and offloading of liquefied natural gas (LNG); operation of floating liquefaction natural gas (FLNG) vessels or projects; transportation of LNG carriers; and vessel management activities. Golar LNG Limited was founded in 1946 and is headquartered in Hamilton, Bermuda.