Devon Energy Corporation (NYSE: DVN) and Enerplus Corporation (NYSE:ERF) are both mid-cap oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.
This table compares Devon Energy Corporation and Enerplus Corporation’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
|Devon Energy Corporation
Valuation & Earnings
This table compares Devon Energy Corporation and Enerplus Corporation’s gross revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
|Devon Energy Corporation
Enerplus Corporation has higher revenue, but lower earnings than Devon Energy Corporation. Enerplus Corporation is trading at a lower price-to-earnings ratio than Devon Energy Corporation, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations for Devon Energy Corporation and Enerplus Corporation, as reported by MarketBeat.
||Strong Buy Ratings
|Devon Energy Corporation
Devon Energy Corporation currently has a consensus price target of $45.88, suggesting a potential upside of 13.54%. Enerplus Corporation has a consensus price target of $14.80, suggesting a potential upside of 50.41%. Given Enerplus Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Enerplus Corporation is more favorable than Devon Energy Corporation.
Institutional and Insider Ownership
77.6% of Devon Energy Corporation shares are held by institutional investors. Comparatively, 51.3% of Enerplus Corporation shares are held by institutional investors. 0.5% of Devon Energy Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Devon Energy Corporation pays an annual dividend of $0.24 per share and has a dividend yield of 0.6%. Enerplus Corporation pays an annual dividend of $0.10 per share and has a dividend yield of 1.0%. Devon Energy Corporation pays out 8.2% of its earnings in the form of a dividend. Enerplus Corporation pays out 3.1% 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. Enerplus Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility and Risk
Devon Energy Corporation has a beta of 2.22, suggesting that its stock price is 122% more volatile than the S&P 500. Comparatively, Enerplus Corporation has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500.
Enerplus Corporation beats Devon Energy Corporation on 10 of the 16 factors compared between the two stocks.
Devon Energy Corporation Company Profile
Devon Energy Corporation is an independent energy company. The Company also controls EnLink Midstream Partners, L.P. (EnLink). The Company’s segments include U.S., Canada and EnLink. The Company is engaged primarily in the exploration, development and production of oil, natural gas and natural gas liquids (NGLs). The Company’s operations are concentrated in various North American onshore areas in the United States and Canada. The Company’s U.S. and Canada segments are primarily engaged in oil and gas exploration and production activities. EnLink is a master limited partnership (MLP) with a midstream business and operations located across the United States. EnLink focuses on providing gathering, transmission, processing, storage, fractionation and marketing to upstream oil and natural gas producers. The Company’s properties include Barnett Shale, Delaware Basin, Eagle Ford, Heavy Oil, Rockies Oil and STACK.
Enerplus Corporation Company Profile
Enerplus Corporation is an oil and natural gas company. The Company’s oil and natural gas property interests are located in the United States, primarily in North Dakota, Montana, and Pennsylvania, as well as in western Canada in the provinces of Alberta, British Columbia and Saskatchewan. The Company’s oil and natural gas property interests contains proved plus probable gross reserves of approximately 14.3 million barrels (MMbbls) of light and medium crude oil, 39.0 MMbbls of heavy crude oil, 123 MMbbls of tight oil, 18.1 MMbbls of natural gas liquids (NGLs), 126.3 billion cubic feet (Bcf) of conventional natural gas and 1,002.8 Bcf of shale gas, for a total of approximately 382.5 million barrels of oil equivalent (MMBOE). The Company’s primary crude oil properties in the United States are located in the Fort Berthold region of North Dakota and in Richland County, Montana.
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