Teekay (NYSE:TK – Get Free Report) and EOG Resources (NYSE:EOG – Get Free Report) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.
Risk & Volatility
Teekay has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500. Comparatively, EOG Resources has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500.
Valuation and Earnings
This table compares Teekay and EOG Resources”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Teekay | $1.15 billion | 1.15 | $98.11 million | $2.08 | 7.35 |
| EOG Resources | $22.63 billion | 3.43 | $4.98 billion | $12.85 | 11.53 |
EOG Resources has higher revenue and earnings than Teekay. Teekay is trading at a lower price-to-earnings ratio than EOG Resources, indicating that it is currently the more affordable of the two stocks.
Dividends
Teekay pays an annual dividend of $0.25 per share and has a dividend yield of 1.6%. EOG Resources pays an annual dividend of $4.08 per share and has a dividend yield of 2.8%. Teekay pays out 12.0% of its earnings in the form of a dividend. EOG Resources pays out 31.8% 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. Teekay has raised its dividend for 1 consecutive years and EOG Resources has raised its dividend for 8 consecutive years. EOG Resources is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Teekay and EOG Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Teekay | 15.78% | 7.91% | 7.26% |
| EOG Resources | 25.44% | 23.44% | 13.58% |
Institutional and Insider Ownership
46.7% of Teekay shares are held by institutional investors. Comparatively, 89.9% of EOG Resources shares are held by institutional investors. 2.4% of Teekay shares are held by insiders. Comparatively, 0.1% of EOG Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings and price targets for Teekay and EOG Resources, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Teekay | 0 | 0 | 1 | 0 | 3.00 |
| EOG Resources | 0 | 18 | 10 | 1 | 2.41 |
EOG Resources has a consensus price target of $159.23, suggesting a potential upside of 7.50%. Given EOG Resources’ higher possible upside, analysts clearly believe EOG Resources is more favorable than Teekay.
Summary
EOG Resources beats Teekay on 15 of the 18 factors compared between the two stocks.
About Teekay
Teekay Corporation engages in the international crude oil and other marine transportation services worldwide. The company owns and operates crude oil and refined product tankers. It also provides ship-to-ship support services; tanker commercial management operation services; and operational and maintenance marine services. As of March 1, 2024, the company operated a fleet of approximately 53 owned and chartered-in vessels. It serves energy and utility companies, major oil traders, large oil consumers and petroleum product producers, government agencies, and various other entities that depend upon marine transportation. Teekay Corporation was founded in 1973 and is headquartered in Hamilton, Bermuda.
About EOG Resources
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.
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