Baytex Energy (NYSE:BTE – Get Free Report) and Ovintiv (NYSE:OVV – Get Free Report) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.
Earnings & Valuation
This table compares Baytex Energy and Ovintiv”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Baytex Energy | $2.56 billion | 1.35 | -$432.12 million | ($0.70) | -6.86 |
| Ovintiv | $8.91 billion | 1.85 | $1.24 billion | $3.10 | 18.89 |
Dividends
Baytex Energy pays an annual dividend of $0.07 per share and has a dividend yield of 1.5%. Ovintiv pays an annual dividend of $1.20 per share and has a dividend yield of 2.0%. Baytex Energy pays out -10.0% of its earnings in the form of a dividend. Ovintiv pays out 38.7% 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. Ovintiv has increased its dividend for 4 consecutive years. Ovintiv is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Baytex Energy and Ovintiv, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Baytex Energy | 1 | 6 | 3 | 1 | 2.36 |
| Ovintiv | 0 | 6 | 14 | 1 | 2.76 |
Ovintiv has a consensus price target of $63.00, suggesting a potential upside of 7.56%. Given Ovintiv’s stronger consensus rating and higher probable upside, analysts clearly believe Ovintiv is more favorable than Baytex Energy.
Institutional & Insider Ownership
46.2% of Baytex Energy shares are held by institutional investors. Comparatively, 83.8% of Ovintiv shares are held by institutional investors. 0.8% of Baytex Energy shares are held by company insiders. Comparatively, 0.9% of Ovintiv shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Baytex Energy and Ovintiv’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Baytex Energy | -24.25% | -10.85% | -6.38% |
| Ovintiv | 8.51% | 13.14% | 6.96% |
Risk and Volatility
Baytex Energy has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, Ovintiv has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.
Summary
Ovintiv beats Baytex Energy on 16 of the 17 factors compared between the two stocks.
About Baytex Energy
Baytex Energy Corp. is an oil & gas exploration and production company. The firm engages in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. The company was founded on June 3, 1993 and is headquartered in Calgary, Canada.
About Ovintiv
Ovintiv Inc., together with its subsidiaries, explores, develops, produces, and markets natural gas, oil, and natural gas liquids in the United States and Canada. The company operates through USA Operations, Canadian Operations, and Market Optimization segments. Its principal assets include Permian in west Texas and Anadarko in west-central Oklahoma; and Montney in northeast British Columbia and northwest Alberta. In addition, the company's upstream assets comprise Bakken in northwest North Dakota, and Uinta in central Utah; and Horn River in northeast British Columbia. The company was formerly known as Encana Corporation and changed its name to Ovintiv Inc. in January 2020. Ovintiv Inc. was incorporated in 2020 and is based in Denver, Colorado.
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