Head-To-Head Analysis: EOG Resources (NYSE:EOG) vs. Diversified Energy (NYSE:DEC)

EOG Resources (NYSE:EOG) and Diversified Energy (NYSE:DEC) are both oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Insider and Institutional Ownership

89.9% of EOG Resources shares are held by institutional investors. Comparatively, 26.5% of Diversified Energy shares are held by institutional investors. 0.2% of EOG Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares EOG Resources and Diversified Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EOG Resources	$24.19 billion	3.17	$7.59 billion	$12.42	10.97
Diversified Energy	$868.26 million	0.91	$758.02 million	N/A	N/A

EOG Resources has higher revenue and earnings than Diversified Energy.

Profitability

This table compares EOG Resources and Diversified Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EOG Resources	29.18%	23.77%	15.24%
Diversified Energy	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for EOG Resources and Diversified Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EOG Resources	0	13	8	1	2.45
Diversified Energy	0	0	2	0	3.00

EOG Resources currently has a consensus target price of $143.48, suggesting a potential upside of 5.27%. Diversified Energy has a consensus target price of $23.00, suggesting a potential upside of 41.02%. Given Diversified Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Diversified Energy is more favorable than EOG Resources.

Dividends

EOG Resources pays an annual dividend of $3.64 per share and has a dividend yield of 2.7%. Diversified Energy pays an annual dividend of $0.81 per share and has a dividend yield of 5.0%. EOG Resources pays out 29.3% of its earnings in the form of a dividend.

Summary

EOG Resources beats Diversified Energy on 10 of the 14 factors compared between the two stocks.

About EOG Resources

EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, natural gas liquids, and natural gas primarily in producing basins in the United States, the Republic of Trinidad and Tobago and internationally. The company was formerly known as Enron Oil & Gas Company. EOG Resources, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.

About Diversified Energy

Diversified Energy Company PLC operates as an independent owner and operator of producing natural gas and oil wells primarily in the Appalachian Basin of the United States. The company is involved in the production, marketing, and transportation of natural gas, natural gas liquids, crude oil, and condensates. Its assets consist of natural gas wells and gathering systems located in the states of Tennessee, Kentucky, Virginia, West Virginia, Ohio, Pennsylvania, Oklahoma, Texas, and Louisiana. The company was formerly known as Diversified Gas & Oil PLC and changed its name to Diversified Energy Company PLC in May 2021. Diversified Energy Company PLC was founded in 2001 and is headquartered in Birmingham, Alabama.