Bp Vs Shell Stock Comparison

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Bp Vs Shell Stock Comparison

Bp Vs Shell: Which Share Offers Better Value?

quick look at the last 5 years shows that the share price of Shell has outperformed BP. But, one question that's on everyone's mind is which stock is the cheapest and offers more growth prospects.

Since 2020, the share price of Shell (SHEL) has jumped 96%. On the other hand, only a 21% increase was seen in the BP. That's one key reason many think that BP would be the next takeover target.

Bp Is Clear Winner

In fact, a potential buyer could see this decline in the share price as an opportunity to acquire BP at a low price.

And if we look at balance sheets, the BP is the clear winner as it offers more value. The P/B ratio of BP is also much better compared to Shell.

If we talk about income, it's a different story for the BP. The firm had a $7.61/share loss, which isn't a good thing at all. On the other hand, there is no available RCP for Shell, but they did report a $3.44/share profit.

Also, the free cash flow of Shell was reported at $50.6 billion. On the other hand, the free cash flow of BP was around $25.1 billion.

So, if we look at all these metrics, it becomes clear that BP is a much better stock than Shell. However, it's important to note that we are in the era of clean & green energy.

Under this changed environment, it's important to remember that no one should invest in these stocks for the long term. If your definition of long term is a few years, that's fine. But, if you are thinking of holding these shares for a decade or more, just don't!

The world will move away from generating energy from fossil fuels, which will be bad news for both BP and Shell stocks.

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