Santos vs Viva Energy shares: Which ASX energy stock stands out?

Investors looking at Santos Ltd (ASX: STO) and Viva Energy Group Ltd (ASX: VEA) are sizing up two heavyweights in Australia’s energy sector. Both play a vital role in supplying the fuel and energy keeping the nation running, but their businesses and financial profiles are quite different. Here’s how Santos and Viva Energy stack up for the everyday Aussie looking to buy into the local energy scene.

The case for Santos

Santos is a major oil and gas producer, based in Adelaide but operating across Australia, Papua New Guinea, Timor-Leste, and as far afield as Alaska. With decades of experience, it boasts one of Australia’s largest resource acreages and substantial infrastructure, especially for natural gas. The company’s reach covers both domestic supply and Asian export markets, and it’s busy developing big-ticket LNG projects.

Looking at the numbers, Santos commands a market cap of $27.77 billion, which makes it one of the largest ASX-listed energy names. Its shares are currently on a price-to-earnings ratio (P/E) of 26.58 and the stated dividend yield is 3.66%. EPS comes in at $0.225, and the declared dividend per share is $0.31. Santos has delivered an impressive year-to-date return of 41.1%.

When it comes to dividends, Santos’s record shows regular payouts, but recent dividends have been unfranked—so investors in higher tax brackets may not get the full benefit. According to its most recent company profile, Santos continues to expand its LNG portfolio with projects like PNG LNG and Barossa LNG, supporting future growth, although it’s worth noting specific project updates weren’t available in the data supplied here.

The case for Viva Energy

Viva Energy is Australia’s second-largest refined fuel supplier and the exclusive Australian licensee of the Shell brand. It manages a major chunk of the nation’s fuel logistics: making, importing, blending, and distributing about a quarter of Australia’s demand. Viva owns the Geelong Refinery—one of just two left in the country—and supplies over 1,300 branded service stations. In recent years, the business expanded into convenience store retailing after acquiring Coles Express and is eyeing new frontiers with natural gas and hydrogen technology.

Viva’s market cap sits at $5.26 billion—smaller than Santos, but nothing to sneeze at for a company focused mainly on fuel distribution and refining. Its P/E ratio is 23.58, slightly lower than Santos, and its dividend yield is 3.69%. The latest EPS is $0.134, with a dividend per share of $0.15. Franking is a standout point here: every recent dividend is fully franked, which increases their appealing yield for local investors. Viva shares have also soared this year, posting a massive year-to-date return of 59.8%.

Dividend history is solid, with consistent, fully franked payouts across both interim and final periods. According to its current public description, Viva is buying into energy transition themes, including hydrogen and EV charging opportunities, though again, specific revenue figures weren’t available for this piece.

Valuation comparison

There are some clear differences between these energy stocks in both scale and capital structure—which can matter depending on what you’re after as an investor.

Metric	Santos	Viva Energy
Market Cap	$27.77 billion	$5.26 billion
P/E Ratio	26.58	23.58
Dividend Yield	3.66%	3.69%
Dividend Franking	0–6.6% (recent unfranked)	100% fully franked
Earnings Per Share (EPS)	$0.225	$0.134
Dividend Per Share	$0.31	$0.15
YTD Return	41.1%	59.8%

Note: Santos’ reported P/E ratio and EPS figures may reflect differences in accounting measurement (e.g. underlying vs. statutory earnings), so they might not correspond exactly.

Recent share price performance

Let’s compare both shares’ price action as of 24 September 2026:

• Santos closed at $8.55, gaining 1.79% for the day. Over the year to date, its shares are up 41.1%.
• Viva Energy closed at $3.20, rising 1.27% on the same day. Viva’s year-to-date return is a standout 59.8%.

These moves reflect a period of strength for both, but especially for Viva Energy, which has left most of the sector in its rear-view mirror.

Which is the better buy?

Both Santos and Viva Energy offer exposure to the backbone of Australia’s energy economy, but for me, the more compelling case is with Viva Energy right now. Here’s why: Viva’s shares have surged even further than Santos’s in 2026, but their P/E ratio is actually a touch lower, so investors aren’t paying up dramatically more for that growth. The dividend yields are virtually identical, but Viva’s dividends are fully franked—which is a direct win for Aussie investors, as it means those payouts go further after tax.

On top of that, Viva is visibly leaning into the future of fuel—whether it’s hydrogen, EV infrastructure, or importing natural gas—at a time when legacy oil and gas-focused models are facing longer-term questions. The company’s smaller market cap might mean less institutional following, but that can also present extra room for re-rating if execution continues.

Santos remains a cornerstone exposure with its global LNG and oil exposure—and it’s not a poor choice, especially for those seeking oil and gas project leverage. But purely on the numbers and strategy shown here, my pick would be Viva Energy for its franking advantage and stronger share momentum.

The post Santos vs Viva Energy: Which ASX energy stock gets my vote today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Oil prices are climbing again on Monday, continuing a rally that has seen crude gain almost 50% over the past year.

And there’s little sign of things slowing down just yet.

West Texas Intermediate (WTI) crude is currently up 1.15% to US$93.47 per barrel.

Meanwhile, Brent crude has climbed 1.68% to US$106.07, bringing the US$110 mark back into focus.

And after another eventful weekend in the Middle East, there could be more volatility ahead.

Let’s take a closer look.

Trump rejects Iran peace proposal

The latest increase comes after US President Donald Trump rejected Iran’s proposal to end the conflict and reopen the Strait of Hormuz.

According to Reuters, Tehran offered to reopen the strategic waterway within 7 days in exchange for sanctions relief and a ceasefire.

However, Trump refused to accept the terms over the weekend, although negotiations are expected to resume this week.

The situation has been complicated by further attacks across the region.

Saudi Arabia has faced additional missile and drone attacks from Yemen’s Houthi forces, threatening the security of its energy infrastructure.

This has added to concerns about further supply disruptions, helping push oil prices higher.

Russia’s oil infrastructure takes another hit

The conflict in Ukraine is creating further problems, with another Russian refinery forced to suspend operations.

Last Friday, a Ukrainian drone attack damaged Russia’s Novoshakhtinsk refinery in the Rostov region.

The refinery has the capacity to process approximately 110,000 barrels of crude oil per day.

The attack follows several strikes on Russian refining facilities, including sites near Moscow and Yaroslavl.

Russia has also been restricting diesel exports as it attempts to rebuild domestic fuel reserves ahead of cold winter.

Trump has reportedly urged Ukrainian President Volodymyr Zelensky to halt further strikes on Russian oil facilities.

Where could oil prices go next?

Saudi Arabia’s efforts to restore its East-West pipeline could play an important role in where oil prices head next.

The pipeline restarted last week following a drone attack, but it’s still operating below full capacity.

And it could take another 6 to 8 weeks before it returns to its full capacity of 7 million barrels per day.

The pipeline allows Saudi Arabia to transport crude to the Red Sea, bypassing the Strait of Hormuz.

But with operations still limited, the country could struggle to make up for the oil lost through Hormuz.

I’ll be closely watching whether Brent pushes past US$110 this week, especially if the pipeline’s recovery takes longer than expected.

The post Oil prices surge as Trump rejects Iran peace deal. What’s next? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Finding a cheap ASX share is not simply a matter of looking for the biggest decline.

For me, the best opportunities are when the valuation looks modest compared with what a business could earn over the next few years.

Here are three ASX shares I think fit that description today.

Zip Co Ltd (ASX: ZIP)

Zip is probably the most obvious value opportunity of the three.

The buy now, pay later company’s shares have fallen heavily and were recently trading around $1.99, well below their 52-week high of $4.94.

What I think makes that decline interesting is the earnings outlook.

Consensus forecasts point to earnings per share (EPS) of 15 cents in FY27, rising to 18 cents in FY28 and 22.4 cents in FY29.

At $1.99, that puts Zip shares on a PE ratio of roughly 13.3 times forecast FY27 earnings. If the company reaches the FY29 estimate, the multiple falls to just under 9 times.

That looks inexpensive for a business expected to grow earnings meaningfully over the same period.

Zip still needs to deliver on those forecasts, and I would expect plenty of volatility along the way. But I think the current valuation leaves enough upside to make the shares worth buying.

CSL Ltd (ASX: CSL)

CSL shares have already staged an impressive recovery. The healthcare giant is now trading around $177.67, almost double its 52-week low of $90.

While this means it isn’t as cheap as it was, I still see a lot of value in this ASX share.

Consensus forecasts point to EPS of $8.98 in FY27, rising to $9.47 in FY28 and $10.07 in FY29.

At today’s price, that puts CSL on a forward PE ratio of around 20 times FY27 earnings, falling to less than 18 times FY29 earnings if those forecasts are achieved.

For a global healthcare business with strong positions in plasma therapies, vaccines, and specialised medicines, I think that valuation still looks attractive.

The sharp rebound from the lows means some of the recovery has already been recognised by the market. But with earnings expected to keep growing, I still think CSL offers enough value at current levels to remain on my buy list.

Goodman Group (ASX: GMG)

Goodman is my third pick. The shares were recently trading around $26.49, down from a 52-week high of $34.78.

What I like here is that the share price decline has happened despite its earnings growth outlook remaining positive.

Goodman generated EPS of 129.9 cents in FY26. Consensus forecasts point to 142 cents in FY27 and 151 cents in FY28.

That leaves the shares trading on around 18.6 times forecast FY27 earnings.

I think that looks reasonable given Goodman’s growth opportunities, particularly its increasing exposure to data centres.

The enormous investment being made in AI and cloud infrastructure is creating demand for sites with access to land, power, and major population centres. Goodman has positioned itself to participate in that development pipeline.

Foolish takeaway

Cheap can mean different things in the share market, and I think that is what makes these three ASX shares worth another look.

None of them needs everything to go perfectly for today’s prices to make sense to me. If earnings broadly move in the direction analysts expect, I think there is still room for patient investors to do well.

The post 3 cheap ASX shares I would buy now appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Goodman Group. The Motley Fool Australia has recommended CSL and Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.