Vermilion Energy (NYSE: VET) and Devon Energy (NYSE:DVN) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.
Valuation & Earnings
This table compares Vermilion Energy and Devon Energy’s gross revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
Vermilion Energy has higher earnings, but lower revenue than Devon Energy. Devon Energy is trading at a lower price-to-earnings ratio than Vermilion Energy, indicating that it is currently the more affordable of the two stocks.
Vermilion Energy pays an annual dividend of $2.07 per share and has a dividend yield of 6.2%. Devon Energy pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. Vermilion Energy pays out 690.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Devon Energy pays out 14.1% of its earnings in the form of a dividend.
Risk and Volatility
Vermilion Energy has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Devon Energy has a beta of 2.1, meaning that its share price is 110% more volatile than the S&P 500.
Institutional & Insider Ownership
55.1% of Vermilion Energy shares are owned by institutional investors. Comparatively, 76.9% of Devon Energy shares are owned by institutional investors. 0.5% of Devon Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Vermilion Energy and Devon Energy’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
This is a summary of recent ratings and target prices for Vermilion Energy and Devon Energy, as provided by MarketBeat.
||Strong Buy Ratings
Vermilion Energy currently has a consensus price target of $52.25, indicating a potential upside of 56.16%. Devon Energy has a consensus price target of $47.47, indicating a potential upside of 56.10%. Given Vermilion Energy’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Vermilion Energy is more favorable than Devon Energy.
Devon Energy beats Vermilion Energy on 10 of the 16 factors compared between the two stocks.
Vermilion Energy Company Profile
Vermilion Energy Inc. produces oil and gas, and focuses on the acquisition, development and optimization of producing properties in North America, the Europe and Australia. Its segments include Canada, which includes production and assets focused in West Pembina near Drayton Valley, Alberta and Northgate in southeast Saskatchewan; France, which produces oil in France; Netherlands, which produces onshore gas and interests include over 24 onshore licenses and two offshore licenses; Germany, which holds interest in a four partner consortium; Ireland, which includes a non-operating interest in the offshore Corrib gas field located approximately 83 kilometers off the northwest coast of Ireland; Australia, which holds an operated working interest in the Wandoo field located approximately 80 kilometers offshore on the northwest shelf of Australia; the United States, which has interests in approximately 97,200 net acres of land in the Powder River Basin of northeastern Wyoming, and Corporate.
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.
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