Denbury Resources (NYSE: DNR) and Cabot Oil & Gas (NYSE:COG) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.
Institutional and Insider Ownership
80.3% of Denbury Resources shares are held by institutional investors. Comparatively, 95.7% of Cabot Oil & Gas shares are held by institutional investors. 1.2% of Denbury Resources shares are held by company insiders. Comparatively, 1.6% of Cabot Oil & Gas shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a summary of recent recommendations for Denbury Resources and Cabot Oil & Gas, as provided by MarketBeat.com.
||Strong Buy Ratings
|Cabot Oil & Gas
Denbury Resources currently has a consensus price target of $2.08, indicating a potential upside of 15.10%. Cabot Oil & Gas has a consensus price target of $30.59, indicating a potential upside of 7.97%. Given Denbury Resources’ higher possible upside, equities research analysts clearly believe Denbury Resources is more favorable than Cabot Oil & Gas.
Risk and Volatility
Denbury Resources has a beta of 3.57, indicating that its share price is 257% more volatile than the S&P 500. Comparatively, Cabot Oil & Gas has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.
This table compares Denbury Resources and Cabot Oil & Gas’ net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
|Cabot Oil & Gas
Earnings & Valuation
This table compares Denbury Resources and Cabot Oil & Gas’ top-line revenue, earnings per share and valuation.
||Earnings Per Share
|Cabot Oil & Gas
Cabot Oil & Gas has higher revenue and earnings than Denbury Resources. Cabot Oil & Gas is trading at a lower price-to-earnings ratio than Denbury Resources, indicating that it is currently the more affordable of the two stocks.
Cabot Oil & Gas pays an annual dividend of $0.20 per share and has a dividend yield of 0.7%. Denbury Resources does not pay a dividend. Cabot Oil & Gas pays out -64.5% of its earnings in the form of a dividend.
Cabot Oil & Gas beats Denbury Resources on 13 of the 15 factors compared between the two stocks.
About Denbury Resources
Denbury Resources Inc. is an independent oil and natural gas company. The Company’s operations are focused in two operating areas: the Gulf Coast and Rocky Mountain regions. Its properties with proved and producing reserves in the Gulf Coast region are situated in Mississippi, Texas, Louisiana and Alabama, and in the Rocky Mountain region are situated in Montana, North Dakota and Wyoming. It had an estimated proved oil and natural gas reserves of 254.5 million barrels of oil equivalent (MMBOE) as of December 31, 2016. Its primary Gulf Coast carbon dioxide (CO2) source is Jackson Dome, which is located near Jackson, Mississippi. Its mature group of properties includes the initial CO2 field, Little Creek, and other fields, including Brookhaven, Cranfield, Eucutta, Lockhart Crossing, Mallalieu and Soso fields. Its LaBarge Field is located in southwestern Wyoming. Its Riley Ridge Federal Unit is located in southwestern Wyoming and produces gas from the same LaBarge Field.
About Cabot Oil & Gas
Cabot Oil & Gas Corporation is an independent oil and gas company engaged in the development, exploitation and exploration of oil and gas properties. The Company operates in the segment of natural gas and oil development, exploitation, exploration and production, in the continental United States. Its assets are concentrated in areas with known hydrocarbon resources, which are conducive to multi-well, repeatable drilling programs. As of December 31, 2016, its exploration, development and production operations were primarily concentrated in two unconventional plays: the Marcellus Shale in northeast Pennsylvania and the Eagle Ford Shale in south Texas. The Company also has operations in various other unconventional and conventional plays throughout the continental United States. Its Marcellus Shale properties are principally located in Susquehanna County, Pennsylvania. Its properties in the Eagle Ford Shale are principally located in Atascosa, Frio and La Salle Counties, Texas.
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