Comparing Devon Energy (NYSE:DVN) & APA (NASDAQ:APA)

Devon Energy (NYSE:DVN – Get Free Report) and APA (NASDAQ:APA – Get Free Report) are both large-cap energy companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Devon Energy and APA, as provided by MarketBeat.com.

Devon Energy presently has a consensus price target of $60.72, suggesting a potential upside of 37.58%. APA has a consensus price target of $44.76, suggesting a potential upside of 0.60%. Given Devon Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Devon Energy is more favorable than APA.

Insider and Institutional Ownership

69.7% of Devon Energy shares are held by institutional investors. Comparatively, 83.0% of APA shares are held by institutional investors. 4.6% of Devon Energy shares are held by insiders. Comparatively, 0.7% of APA shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Devon Energy has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500. Comparatively, APA has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500.

Valuation & Earnings

This table compares Devon Energy and APA”s revenue, earnings per share (EPS) and valuation.

Devon Energy has higher revenue and earnings than APA. APA is trading at a lower price-to-earnings ratio than Devon Energy, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Devon Energy and APA’s net margins, return on equity and return on assets.

Dividends

Devon Energy pays an annual dividend of $1.28 per share and has a dividend yield of 2.9%. APA pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. Devon Energy pays out 30.4% of its earnings in the form of a dividend. APA pays out 21.1% 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 raised its dividend for 1 consecutive years. Devon Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Devon Energy beats APA on 12 of the 18 factors compared between the two stocks.

About Devon Energy

(Get Free Report)

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 APA

(Get Free Report)

APA Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids. It has oil and gas operations in the United States, Egypt, and North Sea. The company also has exploration and appraisal activities in Suriname, as well as holds interests in projects located in Uruguay and internationally. APA Corporation was incorporated in 1954 and is headquartered in Houston, Texas.

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