PDC Energy (NASDAQ:PDCE) and Devon Energy (NYSE:DVN) are both oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.
Valuation and Earnings
This table compares PDC Energy and Devon Energy's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| PDC Energy | $1.16 billion | 3.01 | $-56,670,000.00 | $0.83 | 42.11 |
| Devon Energy | $6.22 billion | 2.33 | $-355,000,000.00 | $1.38 | 15.61 |
PDC Energy has higher earnings, but lower revenue than Devon Energy. Devon Energy is trading at a lower price-to-earnings ratio than PDC Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares PDC Energy and Devon Energy's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| PDC Energy | -55.72% | 2.42% | 1.20% |
| Devon Energy | -62.68% | 2.38% | 0.86% |
Analyst Recommendations
This is a summary of recent recommendations for PDC Energy and Devon Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| PDC Energy | 0 | 1 | 14 | 0 | 2.93 |
| Devon Energy | 0 | 2 | 17 | 1 | 2.95 |
PDC Energy currently has a consensus price target of $26.0667, indicating a potential downside of 25.42%. Devon Energy has a consensus price target of $18.2143, indicating a potential downside of 15.44%. Given Devon Energy's stronger consensus rating and higher possible upside, analysts clearly believe Devon Energy is more favorable than PDC Energy.
Risk & Volatility
PDC Energy has a beta of 3.28, indicating that its share price is 228% more volatile than the S&P 500. Comparatively, Devon Energy has a beta of 3.46, indicating that its share price is 246% more volatile than the S&P 500.
Institutional & Insider Ownership
80.9% of Devon Energy shares are held by institutional investors. 0.9% of PDC Energy shares are held by company insiders. Comparatively, 0.6% of Devon Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
Devon Energy beats PDC Energy on 9 of the 15 factors compared between the two stocks.
