ConocoPhillips (COP) versus Murphy Oil (MUR) Financial Comparison

Murphy Oil (NYSE: MUR) and ConocoPhillips (NYSE:COP) are both mid-cap oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Analyst Ratings

This is a summary of current recommendations and price targets for Murphy Oil and ConocoPhillips, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Murphy Oil 2 7 1 0 1.90
ConocoPhillips 0 7 12 1 2.70

Murphy Oil currently has a consensus target price of $30.50, suggesting a potential upside of 5.54%. ConocoPhillips has a consensus target price of $55.63, suggesting a potential upside of 8.40%. Given ConocoPhillips’ stronger consensus rating and higher probable upside, analysts clearly believe ConocoPhillips is more favorable than Murphy Oil.

Volatility & Risk

Murphy Oil has a beta of 2.24, suggesting that its stock price is 124% more volatile than the S&P 500. Comparatively, ConocoPhillips has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Earnings & Valuation

This table compares Murphy Oil and ConocoPhillips’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Murphy Oil $1.87 billion 2.66 -$275.97 million ($0.51) -56.67
ConocoPhillips $24.36 billion 2.52 -$3.62 billion ($1.85) -27.74

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

Dividends

Murphy Oil pays an annual dividend of $1.00 per share and has a dividend yield of 3.5%. ConocoPhillips pays an annual dividend of $1.06 per share and has a dividend yield of 2.1%. Murphy Oil pays out -196.1% of its earnings in the form of a dividend. ConocoPhillips pays out -57.3% 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. Murphy Oil is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Murphy Oil and ConocoPhillips’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Murphy Oil -4.15% -1.25% -0.61%
ConocoPhillips -7.32% 0.12% 0.05%

Insider and Institutional Ownership

96.9% of Murphy Oil shares are held by institutional investors. Comparatively, 69.9% of ConocoPhillips shares are held by institutional investors. 6.9% of Murphy Oil shares are held by company insiders. Comparatively, 0.8% of ConocoPhillips shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Murphy Oil beats ConocoPhillips on 9 of the 16 factors compared between the two stocks.

Murphy Oil Company Profile

Murphy Oil Corporation (Murphy) is an oil and gas exploration and production company. The Company’s exploration and production business explores for and produces crude oil, natural gas and natural gas liquids across the world. Its exploration and production activities are subdivided into four geographic segments: the United States, Canada, Malaysia and all other countries. It explores for and produces crude oil, natural gas and natural gas liquids around the world. This business maintains upstream operating offices in several locations around the world, including Houston, Texas, Calgary, Alberta, and Kuala Lumpur, Malaysia. As of December 31, 2016, Murphy’s principal exploration and production activities were conducted in the United States by Murphy Exploration & Production Company-USA (Murphy Expro USA), in Malaysia, Australia, Brunei, and Vietnam by Murphy Exploration & Production Company-International (Murphy Expro International) and its subsidiaries, and in Western Canada.

ConocoPhillips Company Profile

ConocoPhillips is an independent exploration and production company. The Company explores for, produces, transports and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG) and natural gas liquids. The Company operates through five segments: Alaska, Lower 48, Canada, Europe and North Africa, Asia Pacific and Middle East, and Other International. The Alaska segment explores for, produces, transports and markets crude oil, natural gas liquids, natural gas and LNG. The Lower 48 segment consists of operations located in the United States Lower 48 states and the Gulf of Mexico. Its Canadian operations consists of oil sands developments in the Athabasca Region of northeastern Alberta. The Europe and North Africa segment consists of operations and exploration activities in Norway, the United Kingdom and Libya. The Asia Pacific and Middle East segment has exploration and production operations in China, Indonesia, Malaysia and Australia.

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