Devon Energy (NYSE:DVN) and Berry Petroleum (NASDAQ:BRY) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.
Insider and Institutional Ownership
80.9% of Devon Energy shares are held by institutional investors. Comparatively, 91.5% of Berry Petroleum shares are held by institutional investors. 0.6% of Devon Energy shares are held by insiders. Comparatively, 1.0% of Berry Petroleum shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Devon Energy and Berry Petroleum'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% |
| Berry Petroleum | -35.49% | 8.20% | 4.51% |
Volatility and Risk
Devon Energy has a beta of 3.46, indicating that its share price is 246% more volatile than the S&P 500. Comparatively, Berry Petroleum has a beta of 2.94, indicating that its share price is 194% more volatile than the S&P 500.
Earnings and Valuation
This table compares Devon Energy and Berry Petroleum's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Devon Energy | $6.22 billion | 2.41 | $-355,000,000.00 | $1.38 | 16.12 |
| Berry Petroleum | $559.41 million | 0.75 | $43.54 million | $1.35 | 3.89 |
Berry Petroleum has lower revenue, but higher earnings than Devon Energy. Berry Petroleum is trading at a lower price-to-earnings ratio than Devon Energy, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Devon Energy and Berry Petroleum, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Devon Energy | 0 | 2 | 17 | 1 | 2.95 |
| Berry Petroleum | 1 | 2 | 1 | 0 | 2.00 |
Devon Energy currently has a consensus price target of $17.5952, suggesting a potential downside of 21.20%. Berry Petroleum has a consensus price target of $5.1667, suggesting a potential downside of 0.83%. Given Berry Petroleum's higher probable upside, analysts clearly believe Berry Petroleum is more favorable than Devon Energy.
Summary
Berry Petroleum beats Devon Energy on 8 of the 15 factors compared between the two stocks.
