Devon Energy (DVN) & Its Peers Financial Analysis

Devon Energy (NYSE:DVN) is one of 1,051 public companies in the “Oil, Gas & Consumable Fuels” industry, but how does it contrast to its competitors? We will compare Devon Energy to related businesses based on the strength of its institutional ownership, earnings, dividends, risk, profitability, valuation and analyst recommendations.

Dividends

Devon Energy pays an annual dividend of $1.28 per share and has a dividend yield of 3.0%. Devon Energy pays out 30.4% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 9.1% and pay out -114.9% of their earnings in the form of a dividend. Devon Energy has increased its dividend for 1 consecutive years. Devon Energy lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Devon Energy and its competitors’ 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%
Devon Energy Competitors	-469.71%	19.37%	6.42%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Devon Energy	0	3	25	2	2.97
Devon Energy Competitors	5973	26967	40820	2413	2.52

Devon Energy currently has a consensus price target of $60.72, indicating a potential upside of 41.72%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 29.03%. Given Devon Energy’s stronger consensus rating and higher probable upside, research analysts plainly believe Devon Energy is more favorable than its competitors.

Insider & Institutional Ownership

69.7% of Devon Energy shares are held by institutional investors. Comparatively, 30.8% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 4.6% of Devon Energy shares are held by company insiders. Comparatively, 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Devon Energy and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Devon Energy	$19.68 billion	$2.64 billion	10.18
Devon Energy Competitors	$11.61 billion	$5.51 billion	-0.39

Devon Energy has higher revenue, but lower earnings than its competitors. Devon Energy is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Devon Energy has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500. Comparatively, Devon Energy’s competitors have a beta of -3.76, suggesting that their average stock price is 476% less volatile than the S&P 500.

Summary

Devon Energy beats its competitors on 10 of the 15 factors compared.

Devon Energy Company Profile

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.