Critical Analysis: John Wood Group (OTCMKTS:WDGJF) and ENI (NYSE:E)

John Wood Group (OTCMKTS:WDGJF) and ENI (NYSE:E) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for John Wood Group and ENI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
John Wood Group	0	0	0	0	N/A
ENI	0	3	3	0	2.50

Profitability

This table compares John Wood Group and ENI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
John Wood Group	N/A	N/A	N/A
ENI	4.21%	11.84%	4.53%

Institutional and Insider Ownership

45.3% of John Wood Group shares are held by institutional investors. Comparatively, 1.2% of ENI shares are held by institutional investors. 0.0% of ENI shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

John Wood Group pays an annual dividend of $0.22 per share and has a dividend yield of 12.6%. ENI pays an annual dividend of $1.48 per share and has a dividend yield of 4.6%. John Wood Group pays out 29.5% of its earnings in the form of a dividend. ENI pays out 63.8% 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. John Wood Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares John Wood Group and ENI’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
John Wood Group	N/A	N/A	N/A	$0.75	2.35
ENI	$91.59 billion	0.59	$5.16 billion	$2.32	13.85

ENI has higher revenue and earnings than John Wood Group. John Wood Group is trading at a lower price-to-earnings ratio than ENI, indicating that it is currently the more affordable of the two stocks.

Summary

ENI beats John Wood Group on 8 of the 11 factors compared between the two stocks.

About John Wood Group

John Wood Group PLC, together with its subsidiaries, engages in the provision of consulting, project management, and engineering solutions to energy and built environment worldwide. It operates through Projects, Operations, Consulting, and Investment Services segments. The Projects segment provides engineering design and project management services across energy and materials markets including oil and gas, chemicals, mining, minerals, and life sciences. The Operations segment offers maintenance, modifications, brownfield engineering, asset management, repair and overhaul, and decommissioning services. The Consulting segment provides technical consulting, digital consulting, decarbonization, and energy asset and technology solutions. The Investment Services segment engages in industrial power and heavy civil engineering activities. The company was incorporated in 1961 and is headquartered in Aberdeen, the United Kingdom.

About ENI

Eni S.p.A. operates as an integrated energy company worldwide. The company engages in exploration, development, extracting, manufacturing, and marketing crude oil and natural gas, oil-based fuels, chemical products, and gas-fired power, as well as energy products from renewable sources. It operates through Exploration & Production; Global Gas & LNG Portfolio (GGP); Enilive, Refining and Chemicals; Plenitude & Power; and Corporate and Other Activities segments. The company engages in research, development, and production of oil, condensates, and natural gas. It is also involved in the supply and sale of wholesale natural gas through pipeline; and international transport, and purchase and marketing of liquefied natural gas. In addition, the company supplies bio-feedstock and crude oil; and stores, produces, distributes, and markets biofuels, oil products, biomethane, basic chemical and petrochemical products, intermediates, plastics and elastomers, and other chemicals, as well as provides smart mobility solutions and mobility services. Further, it engages in the retail marketing of gas, electricity, and related services; production and wholesale sale of electricity from thermoelectric and renewable plants; and provision of services for E-mobility. The company was founded in 1953 and is headquartered in Rome, Italy.