Contrasting Alvopetro Energy (OTCMKTS:ALVOF) & Devon Energy (NYSE:DVN)

Alvopetro Energy (OTCMKTS:ALVOF) and Devon Energy (NYSE:DVN) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

Volatility & Risk

Alvopetro Energy has a beta of -0.18, indicating that its share price is 118% less volatile than the S&P 500. Comparatively, Devon Energy has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alvopetro Energy	42.13%	27.90%	19.95%
Devon Energy	16.67%	14.93%	7.91%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Alvopetro Energy and Devon Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alvopetro Energy	0	0	0	1	4.00
Devon Energy	0	5	22	2	2.90

Devon Energy has a consensus target price of $59.23, indicating a potential upside of 22.28%. Given Devon Energy’s higher possible upside, analysts clearly believe Devon Energy is more favorable than Alvopetro Energy.

Dividends

Alvopetro Energy pays an annual dividend of $0.48 per share and has a dividend yield of 6.2%. Devon Energy pays an annual dividend of $1.28 per share and has a dividend yield of 2.6%. Alvopetro Energy pays out 64.9% of its earnings in the form of a dividend. Devon Energy pays out 30.4% 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.

Earnings and Valuation

This table compares Alvopetro Energy and Devon Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alvopetro Energy	$57.95 million	4.97	$23.10 million	$0.74	10.43
Devon Energy	$19.68 billion	2.71	$2.64 billion	$4.21	11.51

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

Institutional and Insider Ownership

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

Summary

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

About Alvopetro Energy

Alvopetro Energy Ltd. operates as an independent upstream and midstream operator. It engages in the acquisition, exploration, development, and production of hydrocarbons. The company holds interests in the Caburé and Murucututu natural gas assets, Block 182 and 183 exploration assets, and Bom Lugar and Mãe-da-lua oil fields, which covers an area of approximately 22,166 acres in the Recôncavo basin onshore Brazil. Alvopetro Energy Ltd. was incorporated in 2013 and is headquartered in Calgary, Canada.

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.