Golar LNG (NASDAQ:GLNG) & EOG Resources (NYSE:EOG) Head-To-Head Contrast

EOG Resources (NYSE:EOGGet Free Report) and Golar LNG (NASDAQ:GLNGGet Free Report) are both energy companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.

Institutional & Insider Ownership

89.9% of EOG Resources shares are held by institutional investors. Comparatively, 92.2% of Golar LNG shares are held by institutional investors. 0.1% of EOG Resources shares are held by company insiders. Comparatively, 0.0% of Golar LNG shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares EOG Resources and Golar LNG’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EOG Resources 25.44% 23.44% 13.58%
Golar LNG 30.10% 6.86% 3.00%

Dividends

EOG Resources pays an annual dividend of $4.08 per share and has a dividend yield of 2.8%. Golar LNG pays an annual dividend of $1.00 per share and has a dividend yield of 2.0%. EOG Resources pays out 31.8% of its earnings in the form of a dividend. Golar LNG pays out 72.5% 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. EOG Resources has increased its dividend for 8 consecutive years and Golar LNG has increased its dividend for 2 consecutive years. EOG Resources is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares EOG Resources and Golar LNG”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EOG Resources $22.63 billion 3.32 $4.98 billion $12.85 11.16
Golar LNG $393.52 million 13.09 $65.68 million $1.38 36.84

EOG Resources has higher revenue and earnings than Golar LNG. EOG Resources is trading at a lower price-to-earnings ratio than Golar LNG, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

EOG Resources has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500. Comparatively, Golar LNG has a beta of 0.05, indicating that its stock price is 95% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for EOG Resources and Golar LNG, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EOG Resources 0 17 13 1 2.48
Golar LNG 0 3 4 1 2.75

EOG Resources currently has a consensus target price of $156.32, suggesting a potential upside of 9.02%. Golar LNG has a consensus target price of $58.70, suggesting a potential upside of 15.46%. Given Golar LNG’s stronger consensus rating and higher probable upside, analysts plainly believe Golar LNG is more favorable than EOG Resources.

Summary

EOG Resources beats Golar LNG on 11 of the 17 factors compared between the two stocks.

About EOG Resources

(Get Free Report)

EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, natural gas liquids, and natural gas primarily in producing basins in the United States, the Republic of Trinidad and Tobago and internationally. The company was formerly known as Enron Oil & Gas Company. EOG Resources, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.

About Golar LNG

(Get Free Report)

Golar LNG Limited designs, converts, owns, and operates marine infrastructure for the liquefaction of natural gas. The company operates through three segments: FLNG, Corporate and Other, and Shipping. It engages in the regasification, storage, and offloading of liquefied natural gas (LNG); operation of floating liquefaction natural gas (FLNG) vessels or projects; transportation of LNG carriers; and vessel management activities. Golar LNG Limited was founded in 1946 and is headquartered in Hamilton, Bermuda.

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