Devon Energy (DVN) versus MV Oil Trust (MVO) Financial Survey

MV Oil Trust (NYSE: MVO) and Devon Energy (NYSE:DVN) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.

Insider and Institutional Ownership

9.7% of MV Oil Trust shares are held by institutional investors. Comparatively, 77.6% of Devon Energy shares are held by institutional investors. 0.5% of Devon Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for MV Oil Trust and Devon Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MV Oil Trust 0 0 0 0 N/A
Devon Energy 0 4 14 0 2.78

Devon Energy has a consensus price target of $46.59, indicating a potential upside of 20.57%. Given Devon Energy’s higher possible upside, analysts plainly believe Devon Energy is more favorable than MV Oil Trust.

Risk and Volatility

MV Oil Trust has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500. Comparatively, Devon Energy has a beta of 2.21, indicating that its stock price is 121% more volatile than the S&P 500.

Valuation and Earnings

This table compares MV Oil Trust and Devon Energy’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MV Oil Trust $5.50 million 14.59 $4.60 million $0.76 9.18
Devon Energy $12.20 billion 1.66 -$3.30 billion $2.94 13.14

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

Profitability

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

Net Margins Return on Equity Return on Assets
MV Oil Trust 90.96% N/A 46.68%
Devon Energy 11.62% 6.88% 2.88%

Dividends

MV Oil Trust pays an annual dividend of $0.50 per share and has a dividend yield of 7.2%. Devon Energy pays an annual dividend of $0.24 per share and has a dividend yield of 0.6%. MV Oil Trust pays out 65.8% of its earnings in the form of a dividend. Devon Energy pays out 8.2% 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.

Summary

Devon Energy beats MV Oil Trust on 10 of the 15 factors compared between the two stocks.

MV Oil Trust Company Profile

MV Oil Trust (the Trust) is a statutory trust. The Trust acquires and holds a term net profits interest for the benefit of the Trust unitholders. Its underlying properties consist of MV Partners, LLC’s (MV Partners) net interests in all of its oil and natural gas properties, which are located in the Mid-Continent region in the States of Kansas and Colorado. These oil and gas properties include approximately 1,000 producing oil and gas wells. The underlying properties located in the El Dorado Area are operated on behalf of MV Partners by Vess Oil Corporation (Vess Oil) and are located in the El Dorado, Augusta and Valley Center Fields. Each of Vess Oil and Murfin Drilling Company, Inc. (Murfin Drilling) operate leases on behalf of MV Partners included in the underlying properties that are located in the Northwest Kansas Area. The primary fields in this area are the Bemis-Shutts, Trapp, Ray and Hansen Fields.

Devon Energy 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.

Receive News & Ratings for MV Oil Trust Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MV Oil Trust and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply