Analyzing Occidental Petroleum (OXY) and Its Competitors

Occidental Petroleum (NYSE:OXY) is one of 1,050 publicly-traded companies in the “Oil, Gas & Consumable Fuels” industry, but how does it compare to its rivals? We will compare Occidental Petroleum to related businesses based on the strength of its valuation, analyst recommendations, institutional ownership, earnings, profitability, dividends and risk.

Institutional and Insider Ownership

88.7% of Occidental Petroleum shares are held by institutional investors. Comparatively, 30.7% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 0.5% of Occidental Petroleum shares are held by company insiders. Comparatively, 15.5% of shares of all “Oil, Gas & Consumable Fuels” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Occidental Petroleum and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Occidental Petroleum	0	15	12	0	2.44
Occidental Petroleum Competitors	5966	26949	40778	2408	2.52

Occidental Petroleum presently has a consensus target price of $67.88, indicating a potential upside of 12.51%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 22.26%. Given Occidental Petroleum’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Occidental Petroleum has less favorable growth aspects than its rivals.

Valuation & Earnings

This table compares Occidental Petroleum and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Occidental Petroleum	$22.07 billion	$2.33 billion	9.34
Occidental Petroleum Competitors	$10.76 billion	$5.51 billion	-0.31

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

Profitability

This table compares Occidental Petroleum and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Occidental Petroleum	28.36%	15.31%	5.69%
Occidental Petroleum Competitors	-470.89%	19.08%	6.33%

Dividends

Occidental Petroleum pays an annual dividend of $1.12 per share and has a dividend yield of 1.9%. Occidental Petroleum pays out 17.3% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 8.7% and pay out -121.4% of their earnings in the form of a dividend. Occidental Petroleum has increased its dividend for 5 consecutive years. Occidental Petroleum lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk and Volatility

Occidental Petroleum has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500. Comparatively, Occidental Petroleum’s rivals have a beta of -3.70, suggesting that their average share price is 470% less volatile than the S&P 500.

Summary

Occidental Petroleum rivals beat Occidental Petroleum on 10 of the 15 factors compared.

Occidental Petroleum Company Profile

Occidental Petroleum Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, and North Africa. It operates through three segments: Oil and Gas, Chemical, and Midstream and Marketing. The company's Oil and Gas segment explores for, develops, and produces oil and condensate, natural gas liquids (NGLs), and natural gas. Its Chemical segment manufactures and markets basic chemicals, including chlorine, caustic soda, chlorinated organics, potassium chemicals, ethylene dichloride, chlorinated isocyanurates, sodium silicates, and calcium chloride; and vinyls comprising vinyl chloride monomer, polyvinyl chloride, and ethylene. The Midstream and Marketing segment gathers, processes, transports, stores, purchases, and markets oil, condensate, NGLs, natural gas, carbon dioxide, and power. This segment also invests in entities. Occidental Petroleum Corporation was founded in 1920 and is headquartered in Houston, Texas.