Head to Head Contrast: Pengrowth Energy (PGH) & Devon Energy (DVN)

Devon Energy (NYSE: DVN) and Pengrowth Energy (NYSE:PGH) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.

Valuation and Earnings

This table compares Devon Energy and Pengrowth Energy’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Devon Energy $12.20 billion 1.53 -$3.30 billion $2.94 12.10
Pengrowth Energy $427.50 million 0.96 -$221.80 million ($0.79) -0.94

Pengrowth Energy has lower revenue, but higher earnings than Devon Energy. Pengrowth Energy 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 Devon Energy and Pengrowth Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Devon Energy 11.62% 6.88% 2.88%
Pengrowth Energy -101.66% -38.22% -14.60%

Analyst Recommendations

This is a breakdown of current recommendations for Devon Energy and Pengrowth Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Devon Energy 0 5 15 0 2.75
Pengrowth Energy 4 3 0 0 1.43

Devon Energy currently has a consensus target price of $47.65, indicating a potential upside of 33.92%. Pengrowth Energy has a consensus target price of $2.00, indicating a potential upside of 170.27%. Given Pengrowth Energy’s higher possible upside, analysts plainly believe Pengrowth Energy is more favorable than Devon Energy.

Insider & Institutional Ownership

77.7% of Devon Energy shares are held by institutional investors. Comparatively, 14.4% of Pengrowth Energy shares are held by institutional investors. 0.5% of Devon Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Devon Energy has a beta of 2.1, indicating that its stock price is 110% more volatile than the S&P 500. Comparatively, Pengrowth Energy has a beta of 2.37, indicating that its stock price is 137% more volatile than the S&P 500.

Dividends

Devon Energy pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. Pengrowth Energy does not pay a dividend. Devon Energy pays out 8.2% of its earnings in the form of a dividend.

Summary

Devon Energy beats Pengrowth Energy on 12 of the 16 factors compared between the two stocks.

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.

Pengrowth Energy Company Profile

Pengrowth Energy Corporation is engaged in the development, production and acquisition of, and the exploration for, oil and natural gas reserves in the provinces of Alberta, British Columbia, Saskatchewan and Nova Scotia. The Lindbergh thermal property is located approximately 420 kilometers north east of Calgary, Alberta and 50 kilometers south of Bonnyville, Alberta. Its Greater Olds/Garrington area is located approximately 100 kilometers north of Calgary, Alberta. It has varied Working Interests within the Swan Hills area in all of the properties throughout this regional Beaverhill Lake resource base. These are both operated and non-operated, unit and non-unit properties in Judy Creek, Carson Creek, House Mountain, Deer Mountain, Swan Hills, South Swan Hills and Freeman. The properties are located approximately 200 kilometers northwest of Edmonton, Alberta. Its Groundbirch property is located approximately 40 kilometers south west of Fort St. John, British Columbia.

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