Excelerate Energy (NYSE:EE – Get Free Report) and Ovintiv (NYSE:OVV – Get Free Report) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.
Profitability
This table compares Excelerate Energy and Ovintiv’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Excelerate Energy | 3.23% | 2.24% | 1.22% |
| Ovintiv | 9.43% | 14.84% | 8.11% |
Analyst Recommendations
This is a summary of current ratings and target prices for Excelerate Energy and Ovintiv, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Excelerate Energy | 0 | 5 | 5 | 3 | 2.85 |
| Ovintiv | 0 | 3 | 19 | 1 | 2.91 |
Risk and Volatility
Excelerate Energy has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Ovintiv has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.
Dividends
Excelerate Energy pays an annual dividend of $0.36 per share and has a dividend yield of 1.1%. Ovintiv pays an annual dividend of $1.20 per share and has a dividend yield of 2.0%. Excelerate Energy pays out 24.8% of its earnings in the form of a dividend. Ovintiv pays out 33.9% 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. Excelerate Energy has raised its dividend for 2 consecutive years and Ovintiv has raised its dividend for 4 consecutive years. Ovintiv is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
21.8% of Excelerate Energy shares are held by institutional investors. Comparatively, 83.8% of Ovintiv shares are held by institutional investors. 2.3% of Excelerate Energy shares are held by insiders. Comparatively, 0.9% of Ovintiv shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Excelerate Energy and Ovintiv”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Excelerate Energy | $1.23 billion | 2.97 | $39.20 million | $1.45 | 22.16 |
| Ovintiv | $8.91 billion | 1.85 | $1.24 billion | $3.54 | 16.93 |
Ovintiv has higher revenue and earnings than Excelerate Energy. Ovintiv is trading at a lower price-to-earnings ratio than Excelerate Energy, indicating that it is currently the more affordable of the two stocks.
Summary
Ovintiv beats Excelerate Energy on 11 of the 18 factors compared between the two stocks.
About Excelerate Energy
Excelerate Energy, Inc. provides flexible liquefied natural gas (LNG) solutions worldwide. The company offers regasification services, including floating storage and regasification units (FSRUs), infrastructure development, and LNG and natural gas supply, procurement, and distribution services; LNG terminal services; and natural gas supply to-power projects. Excelerate Energy, Inc. was founded in 2003 and is headquartered in The Woodlands, Texas. Excelerate Energy, Inc. is a subsidiary of Excelerate Energy Holdings, LLC.
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.
Receive News & Ratings for Excelerate Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Excelerate Energy and related companies with MarketBeat.com's FREE daily email newsletter.
