With energy prices a big topic for Aussie investors and global themes front of mind, both Woodside Energy Group Ltd (ASX: WDS) and Ampol Ltd (ASX: ALD) land in the spotlight. As two of the largest names in oil and gas, yet with different business models, many will be wondering which company's shares are the better buy today. Here's how they stack up across their core businesses, fundamentals, value, dividend payouts, and recent momentum.
Woodside Energy Group is Australia's largest oil and gas operator. Producing mainly LNG, oil, and gas from a range of large offshore assets, Woodside is seen as a heavyweight in the sector. After merging with BHP's oil and gas business, Woodside further cemented its status as a global energy player. The company, founded in 1954 and listed on the ASX since 1971, holds big production scale and a broad asset base spanning Australia and international waters.
Woodside has a long, consistent track record of large, franked dividends for shareholders stretching back decades, with its last payment at $0.57 per share (franked). The company's scale and resources offer stability, even as it faces the long-term headwinds familiar in fossil fuels.
Ampol is better known to most Aussies as the brand behind roughly 2,000 service stations nation-wide. As Australia's only listed refiner and one of the largest distributors of petroleum products, Ampol's business is all about refining (primarily from its Lytton plant in Brisbane) and big-volume fuel retail and distribution. The company trades on history – it's well over a century old, formerly operated as Caltex, and has more recently focused on retailing and logistics (while also maintaining a presence in New Zealand via Z Energy and a stake in Philippine fuel company Seaoil).
Consistent, franked dividends are a feature here as well, with Ampol's last interim dividend coming in at $1.85 per share (franked). Its lower P/E ratio draws attention for value hunters, though its business is more exposed to the ups and downs of retail volumes and margins.
Both Woodside and Ampol offer eye-catching yields and have strong profit track records, but a few numbers stand out when viewed side-by-side:
Ampol's much lower P/E signals a potentially cheaper earnings valuation compared to Woodside, at least based on recent profits. Its higher (and also franked) dividend yield adds to the appeal for income seekers. Do note: the reported EPS and P/E for Ampol line up mathematically, but Woodside's numbers appear less in sync, possibly due to differences in the basis of the earnings measurement shown.
Both companies have delivered big gains for shareholders recently, but their price histories reveal a bit more detail. Comparing the past month:
The momentum is strong for both, but Ampol's recent month shows steadier progress.
On a pure numbers basis, I'd lean toward Ampol right now. It trades on a much lower P/E than Woodside Energy (7.18 versus 14.32), offers a higher franked yield (5.68%), and has kept pace with Woodside's strong share price run so far this year. While Woodside's scale gives it stability and large assets, that's already reflected in its rich $61 billion market cap. Ampol's business is more retail-facing, but its valuation and income look appealing for everyday investors. That said, Woodside's larger projects and global reach do offer defensive qualities if you're chasing blue chip exposure and long-term oil and gas. For value and income at today's prices, the pick would be Ampol – but both names deserve a spot on any energy watchlist.