Contrasting Anadarko Petroleum (NYSE:APC) and Energen (EGN)

Anadarko Petroleum (NYSE: APC) and Energen (NYSE:EGN) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Volatility and Risk

Anadarko Petroleum has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500. Comparatively, Energen has a beta of 1.73, indicating that its stock price is 73% more volatile than the S&P 500.

Insider & Institutional Ownership

87.8% of Anadarko Petroleum shares are held by institutional investors. Comparatively, 94.5% of Energen shares are held by institutional investors. 0.5% of Anadarko Petroleum shares are held by insiders. Comparatively, 1.0% of Energen shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Anadarko Petroleum and Energen’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Anadarko Petroleum $11.91 billion 2.66 -$456.00 million ($0.79) -73.19
Energen $532.89 million 9.36 -$167.51 million ($0.11) -466.55

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Anadarko Petroleum and Energen, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Anadarko Petroleum 1 4 18 0 2.74
Energen 1 7 14 0 2.59

Anadarko Petroleum currently has a consensus target price of $67.74, suggesting a potential upside of 17.15%. Energen has a consensus target price of $66.32, suggesting a potential upside of 29.22%. Given Energen’s higher probable upside, analysts plainly believe Energen is more favorable than Anadarko Petroleum.

Profitability

This table compares Anadarko Petroleum and Energen’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Anadarko Petroleum -3.83% -7.48% -2.47%
Energen -1.17% -0.45% -0.30%

Dividends

Anadarko Petroleum pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Energen does not pay a dividend. Anadarko Petroleum pays out -25.3% of its earnings in the form of a dividend.

Summary

Energen beats Anadarko Petroleum on 10 of the 16 factors compared between the two stocks.

Anadarko Petroleum Company Profile

Anadarko Petroleum Corporation (Anadarko) is an independent exploration and production company. The Company is engaged in developing, acquiring, and exploring for oil and natural-gas resources. The Company’s segments include Oil and Gas Exploration and Production; Midstream, and Marketing. The Company’s geographical segments include the United States and International. The Oil and Gas Exploration and Production segment explores for and produces oil, condensate, natural gas and natural gas liquids (NGLs), and focuses on the development and operation of the Company’s liquefied natural gas (LNG) project in Mozambique. The Midstream segment engages in gathering, processing, treating and transporting Anadarko and third-party oil, natural-gas and NGLs production. The Marketing segment sells Anadarko’s oil, natural-gas and NGLs production, as well as third-party purchased volumes. As of December 31, 2016, the Company had approximately 1.7 billion barrels of oil equivalent (BOE).

Energen Company Profile

Energen Corporation is an oil and natural gas exploration and production company. The Company is engaged in the exploration, development and production of oil and natural gas properties and natural gas. Its operations are conducted through subsidiary, Energen Resources Corporation and occur within the Midland Basin, the Delaware Basin and the Central Basin Platform areas of the Permian Basin in west Texas and New Mexico. The Company is focused on increasing its oil, natural gas liquids and natural gas production and proved reserves through active development and/or exploratory programs in the Permian Basin. As of December 31, 2016, oil, natural gas liquids and natural gas represented approximately 60%, 20% and 20% of its reserves. As of December 31, 2016, its development activities added approximately 327 million barrels of oil equivalent (MMBOE) of reserves from the drilling of 623 gross development, exploratory and service wells and 73 well recompletions and pay-adds.

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