Head-To-Head Analysis: Devon Energy (DVN) vs. Its Rivals

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

Profitability

This table compares Devon Energy and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Devon Energy	16.22%	17.59%	9.47%
Devon Energy Competitors	-456.96%	19.46%	6.50%

Valuation and Earnings

This table compares Devon Energy and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Devon Energy	$17.19 billion	$2.64 billion	10.03
Devon Energy Competitors	$14.81 billion	$5.51 billion	-0.95

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

Insider and Institutional Ownership

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

Risk and Volatility

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Devon Energy and its peers, 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	5982	26994	40850	2423	2.52

Devon Energy currently has a consensus price target of $60.61, suggesting a potential upside of 43.55%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 28.95%. Given Devon Energy’s stronger consensus rating and higher probable upside, research analysts clearly believe Devon Energy is more favorable than its peers.

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 9.2% and pay out -133.7% of their earnings in the form of a dividend. Devon Energy has raised its dividend for 1 consecutive years. Devon Energy lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

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

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.