Critical Comparison: Ecopetrol (NYSE:EC) and Blue Dolphin Energy (OTCMKTS:BDCO)

Ecopetrol (NYSE:EC) and Blue Dolphin Energy (OTCMKTS:BDCO) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.

Valuation & Earnings

This table compares Ecopetrol and Blue Dolphin Energy’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ecopetrol	$143,189.60 billion	0.00	$25.27 billion	$2.38	4.98
Blue Dolphin Energy	$396.05 million	0.27	$31.01 million	$2.08	3.38

Ecopetrol has higher revenue and earnings than Blue Dolphin Energy. Blue Dolphin Energy is trading at a lower price-to-earnings ratio than Ecopetrol, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Ecopetrol and Blue Dolphin Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ecopetrol	2	4	0	0	1.67
Blue Dolphin Energy	0	0	0	0	N/A

Ecopetrol currently has a consensus price target of $11.27, indicating a potential downside of 4.92%. Given Ecopetrol’s higher probable upside, analysts clearly believe Ecopetrol is more favorable than Blue Dolphin Energy.

Volatility and Risk

Ecopetrol has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, Blue Dolphin Energy has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500.

Profitability

This table compares Ecopetrol and Blue Dolphin Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ecopetrol	14.69%	66.73%	23.50%
Blue Dolphin Energy	7.83%	91.40%	30.43%

Summary

Ecopetrol beats Blue Dolphin Energy on 7 of the 10 factors compared between the two stocks.

About Ecopetrol

Ecopetrol S.A. operates as an integrated energy company. The company operates through four segments: Exploration and Production; Transport and Logistics; Refining, Petrochemical and Biofuels; and Electric Power Transmission and Toll Roads Concessions. It engages in the exploration and production of oil and gas; transportation of crude oil, motor fuels, fuel oil, and other refined products, including diesel, jet, and biofuels; processing and refining crude oil; distribution of natural gas and LPG; sale of refined and petrochemical products; supplying of electric power transmission services; design, development, construction, operation, and maintenance of road and energy infrastructure projects; and supplying of information technology and telecommunications services. As of December 31, 2022, the company had approximately 9,127 kilometers of crude oil and multi-purpose pipelines. It also produces and commercializes polypropylene resins and compounds, and masterbatches; and offers industrial service sales to customers and specialized management services. It has operations in Colombia, the United States, Asia, Central America and the Caribbean, Europe, and South America. The company was formerly known as Empresa Colombiana de Petróleos and changed its name to Ecopetrol S.A. in June 2003. Ecopetrol S.A. was incorporated in 1948 and is headquartered in Bogotá, Colombia.

About Blue Dolphin Energy

Blue Dolphin Energy Company, an independent downstream energy company, engages in the refining and marketing of petroleum products in the United States. It operates through two segments, Refinery Operations, and Tolling and Terminaling. The company produces finished products, including jet fuel, as well as various intermediate products, such as naphtha, heavy oil mud blendstock, and atmospheric gas oil; and conducts tolling and terminaling services at the Nixon facility. It also provides storage tank rentals and ancillary services. The company was incorporated in 1986 and is headquartered in Houston, Texas. Blue Dolphin Energy Company is a subsidiary of Lazarus Energy Holdings, LLC.