Comparing Devon Energy (DVN) and Energen (EGN)

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

Insider & Institutional Ownership

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82.8% of Devon Energy shares are owned by institutional investors. Comparatively, 86.9% of Energen shares are owned by institutional investors. 0.6% of Devon Energy shares are owned by company insiders. Comparatively, 1.0% of Energen shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Devon Energy pays an annual dividend of $0.32 per share and has a dividend yield of 1.1%. Energen does not pay a dividend. Devon Energy pays out 50.8% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Devon Energy and Energen’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Devon Energy	$13.95 billion	0.95	$898.00 million	$0.63	45.11
Energen	$961.04 million	7.32	$306.82 million	$0.75	96.16

Devon Energy has higher revenue and earnings than Energen. Devon Energy is trading at a lower price-to-earnings ratio than Energen, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Devon Energy and Energen, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Devon Energy	1	12	16	0	2.52
Energen	1	10	7	0	2.33

Devon Energy presently has a consensus target price of $46.76, suggesting a potential upside of 64.54%. Energen has a consensus target price of $81.69, suggesting a potential upside of 13.27%. Given Devon Energy’s stronger consensus rating and higher probable upside, research analysts plainly believe Devon Energy is more favorable than Energen.

Profitability

This table compares Devon Energy and Energen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Devon Energy	16.62%	6.40%	2.91%
Energen	31.37%	8.70%	5.78%

Volatility and Risk

Devon Energy has a beta of 2.23, indicating that its share price is 123% more volatile than the S&P 500. Comparatively, Energen has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.

Summary

Energen beats Devon Energy on 9 of the 16 factors compared between the two stocks.

About Devon Energy

Devon Energy Corporation, an independent energy company, primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States and Canada. It operates approximately 14,600 gross wells. The company also offers gathering, transmission, processing, storage, fractionation, and marketing to upstream oil and natural gas producers; and owns natural gas pipelines, plants and treatment facilities. Devon Energy Corporation was founded in 1971 and is headquartered in Oklahoma City, Oklahoma.

About Energen

Energen Corporation, through its subsidiary, Energen Resources Corporation, engages in the exploration, development, and production of oil, natural gas liquids, and natural gas. The company has operations within the Midland Basin, the Delaware Basin, and the Central Basin Platform areas of the Permian Basin in west Texas and New Mexico. As of December 31, 2017, it had a total proved reserves of 444 million barrel of oil equivalent. The company was founded in 1929 and is headquartered in Birmingham, Alabama.