Devon Energy (NYSE:DVN – Get Free Report) and Coterra Energy (NYSE:CTRA – Get Free Report) are both large-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
69.7% of Devon Energy shares are owned by institutional investors. Comparatively, 87.9% of Coterra Energy shares are owned by institutional investors. 0.7% of Devon Energy shares are owned by insiders. Comparatively, 1.7% of Coterra Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Devon Energy and Coterra Energy’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Devon Energy | 22.60% | 29.14% | 14.46% |
Coterra Energy | 23.18% | 10.48% | 6.62% |
Dividends
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Devon Energy and Coterra Energy, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Devon Energy | 0 | 7 | 14 | 0 | 2.67 |
Coterra Energy | 0 | 2 | 16 | 1 | 2.95 |
Devon Energy currently has a consensus price target of $52.63, indicating a potential upside of 22.51%. Coterra Energy has a consensus price target of $32.06, indicating a potential upside of 28.80%. Given Coterra Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Coterra Energy is more favorable than Devon Energy.
Volatility & Risk
Devon Energy has a beta of 2.02, meaning that its share price is 102% more volatile than the S&P 500. Comparatively, Coterra Energy has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500.
Valuation & Earnings
This table compares Devon Energy and Coterra Energy”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Devon Energy | $15.26 billion | 1.76 | $3.75 billion | $5.51 | 7.80 |
Coterra Energy | $5.91 billion | 3.11 | $1.63 billion | $1.75 | 14.22 |
Devon Energy has higher revenue and earnings than Coterra Energy. Devon Energy is trading at a lower price-to-earnings ratio than Coterra Energy, indicating that it is currently the more affordable of the two stocks.
Summary
Coterra Energy beats Devon Energy on 10 of the 17 factors compared between the two stocks.
About Devon Energy
Devon Energy Corporation, an independent energy company, engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. It operates in Delaware, Eagle Ford, Anadarko, Williston, and Powder River Basins. The company was founded in 1971 and is headquartered in Oklahoma City, Oklahoma.
About Coterra Energy
Coterra Energy Inc., an independent oil and gas company, engages in the development, exploration, and production of oil, natural gas, and natural gas liquids in the United States. The company's properties include the Marcellus Shale with approximately 186,000 net acres in the dry gas window of the play located in Susquehanna County, Pennsylvania; Permian Basin properties with approximately 296,000 net acres located in west Texas and southeast New Mexico; and Anadarko Basin properties with approximately 182,000 net acres located in Oklahoma. It also operates natural gas and saltwater gathering and disposal systems in Texas. The company sells its natural gas to industrial customers, local distribution companies, oil and gas marketers, major energy companies, pipeline companies, and power generation facilities. Coterra Energy Inc. was incorporated in 1989 and is headquartered in Houston, Texas.
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