Devon Energy (NYSE:DVN – Get Free Report) and Cameco (NYSE:CCJ – Get Free Report) are both large-cap energy companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.
Institutional & Insider Ownership
69.7% of Devon Energy shares are owned by institutional investors. Comparatively, 70.2% of Cameco shares are owned by institutional investors. 4.6% of Devon Energy shares are owned by insiders. Comparatively, 1.0% of Cameco shares are owned by 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.
Volatility and Risk
Devon Energy has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500. Comparatively, Cameco has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Devon Energy | $17.19 billion | 3.06 | $2.64 billion | $4.21 | 11.37 |
| Cameco | $2.49 billion | 15.57 | $421.96 million | $0.59 | 150.97 |
Devon Energy has higher revenue and earnings than Cameco. Devon Energy is trading at a lower price-to-earnings ratio than Cameco, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Devon Energy and Cameco’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Devon Energy | 16.67% | 14.93% | 7.91% |
| Cameco | 10.20% | 7.59% | 5.23% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Devon Energy and Cameco, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Devon Energy | 0 | 5 | 23 | 2 | 2.90 |
| Cameco | 1 | 4 | 12 | 0 | 2.65 |
Devon Energy currently has a consensus target price of $60.11, indicating a potential upside of 25.53%. Cameco has a consensus target price of $148.68, indicating a potential upside of 66.92%. Given Cameco’s higher possible upside, analysts plainly believe Cameco is more favorable than Devon Energy.
Dividends
Devon Energy pays an annual dividend of $1.28 per share and has a dividend yield of 2.7%. Cameco pays an annual dividend of $0.17 per share and has a dividend yield of 0.2%. Devon Energy pays out 30.4% of its earnings in the form of a dividend. Cameco pays out 28.8% 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. Devon Energy has increased its dividend for 1 consecutive years and Cameco has increased its dividend for 1 consecutive years.
Summary
Devon Energy beats Cameco on 11 of the 17 factors compared between the two stocks.
About Devon Energy
Devon Energy Corporation, an independent energy company, engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. It operates in Delaware, Eagle Ford, Anadarko, Williston, and Powder River Basins. The company was founded in 1971 and is headquartered in Oklahoma City, Oklahoma.
About Cameco
Cameco Corporation provides uranium for the generation of electricity. It operates through Uranium, Fuel Services, Westinghouse segments. The Uranium segment is involved in the exploration for, mining, and milling, purchase, and sale of uranium concentrate. The Fuel Services segment engages in the refining, conversion, and fabrication of uranium concentrate, as well as the purchase and sale of conversion services. This segment also produces CANDU reactor fuel bundles and other reactor components. The company offers nuclear fuel processing services. The Westinghouse segment engages in the manufacture of nuclear reactor technology original equipment. This segment provides products and services to commercial utilities and government agencies; and outage and maintenance services, engineering support, instrumentation and controls equipment, plant modification, and components and parts to nuclear reactors. It sells its uranium and fuel services to nuclear utilities in the Americas, Europe, and Asia. Cameco Corporation was incorporated in 1987 and is headquartered in Saskatoon, Canada.
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