EOG Resources (NYSE:EOG) and Occidental Petroleum (NYSE:OXY) are both large-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.
Earnings and Valuation
This table compares EOG Resources and Occidental Petroleum's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| EOG Resources | $17.38 billion | 2.41 | $2.73 billion | $4.98 | 14.41 |
| Occidental Petroleum | $21.23 billion | 1.08 | $-667,000,000.00 | $1.45 | 16.96 |
EOG Resources has higher earnings, but lower revenue than Occidental Petroleum. EOG Resources is trading at a lower price-to-earnings ratio than Occidental Petroleum, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings for EOG Resources and Occidental Petroleum, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| EOG Resources | 0 | 12 | 13 | 0 | 2.52 |
| Occidental Petroleum | 3 | 9 | 9 | 0 | 2.29 |
EOG Resources currently has a consensus price target of $70.00, indicating a potential downside of 2.47%. Occidental Petroleum has a consensus price target of $22.6278, indicating a potential downside of 7.98%. Given EOG Resources' stronger consensus rating and higher probable upside, research analysts clearly believe EOG Resources is more favorable than Occidental Petroleum.
Institutional and Insider Ownership
87.7% of EOG Resources shares are owned by institutional investors. Comparatively, 66.6% of Occidental Petroleum shares are owned by institutional investors. 0.3% of EOG Resources shares are owned by insiders. Comparatively, 0.2% of Occidental Petroleum shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares EOG Resources and Occidental Petroleum's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| EOG Resources | -2.47% | 5.86% | 3.38% |
| Occidental Petroleum | -76.17% | -15.55% | -2.82% |
Dividends
EOG Resources pays an annual dividend of $1.50 per share and has a dividend yield of 2.1%. Occidental Petroleum pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. EOG Resources pays out 30.1% of its earnings in the form of a dividend. Occidental Petroleum pays out 2.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. EOG Resources has increased its dividend for 3 consecutive years and Occidental Petroleum has increased its dividend for 1 consecutive years. EOG Resources is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
EOG Resources has a beta of 2.09, indicating that its stock price is 109% more volatile than the S&P 500. Comparatively, Occidental Petroleum has a beta of 2.35, indicating that its stock price is 135% more volatile than the S&P 500.
Summary
EOG Resources beats Occidental Petroleum on 13 of the 17 factors compared between the two stocks.
