Devon Energy (NYSE:DVN) and APA (NASDAQ:APA) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
Profitability
This table compares Devon Energy and APA's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Devon Energy | -62.68% | 2.38% | 0.86% |
APA | -162.10% | -48.58% | -2.51% |
Institutional and Insider Ownership
80.9% of Devon Energy shares are owned by institutional investors. Comparatively, 82.5% of APA shares are owned by institutional investors. 0.6% of Devon Energy shares are owned by company insiders. Comparatively, 0.7% of APA shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Dividends
Devon Energy pays an annual dividend of $0.44 per share and has a dividend yield of 2.1%. APA pays an annual dividend of $0.10 per share and has a dividend yield of 0.6%. Devon Energy pays out 31.9% of its earnings in the form of a dividend. Devon Energy has raised its dividend for 3 consecutive years and APA has raised its dividend for 1 consecutive years. Devon Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Devon Energy and APA's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Devon Energy | $6.22 billion | 2.29 | $-355,000,000.00 | $1.38 | 15.36 |
APA | $6.41 billion | 1.01 | $-3,553,000,000.00 | N/A | N/A |
Devon Energy has higher earnings, but lower revenue than APA.
Analyst Recommendations
This is a breakdown of recent ratings for Devon Energy and APA, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Devon Energy | 0 | 2 | 19 | 0 | 2.90 |
APA | 1 | 11 | 11 | 1 | 2.50 |
Devon Energy presently has a consensus target price of $23.4886, indicating a potential upside of 11.16%. APA has a consensus target price of $19.0238, indicating a potential upside of 11.06%. Given Devon Energy's stronger consensus rating and higher possible upside, research analysts plainly believe Devon Energy is more favorable than APA.
Volatility and Risk
Devon Energy has a beta of 3.46, meaning that its share price is 246% more volatile than the S&P 500. Comparatively, APA has a beta of 4.87, meaning that its share price is 387% more volatile than the S&P 500.
Summary
Devon Energy beats APA on 10 of the 17 factors compared between the two stocks.