Evolution Petroleum (NYSE:EPM – Get Rating) and Occidental Petroleum (NYSE:OXY – Get Rating) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.
Institutional & Insider Ownership
63.3% of Evolution Petroleum shares are owned by institutional investors. Comparatively, 86.2% of Occidental Petroleum shares are owned by institutional investors. 8.8% of Evolution Petroleum shares are owned by company insiders. Comparatively, 0.3% of Occidental Petroleum shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Evolution Petroleum and Occidental Petroleum’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Evolution Petroleum||$32.70 million||6.14||-$16.44 million||$0.60||9.92|
|Occidental Petroleum||$26.31 billion||1.98||$2.32 billion||$6.57||8.47|
Occidental Petroleum has higher revenue and earnings than Evolution Petroleum. Occidental Petroleum is trading at a lower price-to-earnings ratio than Evolution Petroleum, indicating that it is currently the more affordable of the two stocks.
Evolution Petroleum pays an annual dividend of $0.40 per share and has a dividend yield of 6.7%. Occidental Petroleum pays an annual dividend of $0.52 per share and has a dividend yield of 0.9%. Evolution Petroleum pays out 66.7% of its earnings in the form of a dividend. Occidental Petroleum pays out 7.9% 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. Evolution Petroleum has increased its dividend for 2 consecutive years and Occidental Petroleum has increased its dividend for 1 consecutive years. Evolution Petroleum is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Evolution Petroleum and Occidental Petroleum’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings for Evolution Petroleum and Occidental Petroleum, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Occidental Petroleum has a consensus target price of $66.83, suggesting a potential upside of 20.03%. Given Occidental Petroleum’s higher probable upside, analysts clearly believe Occidental Petroleum is more favorable than Evolution Petroleum.
Risk and Volatility
Evolution Petroleum has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, Occidental Petroleum has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500.
Occidental Petroleum beats Evolution Petroleum on 11 of the 17 factors compared between the two stocks.
Evolution Petroleum Company Profile (Get Rating)
Evolution Petroleum Corporation, an oil and natural gas company, engages in the development, production, ownership, and management of oil and gas properties in the United States. The company holds interests in a CO2 enhanced oil recovery project in Louisiana's Delhi field. Its Delhi Holt-Bryant Unit covers an area of 13,636 acres located in Northeast Louisiana. The company also holds interests in the Hamilton Dome field covering 5,908 acres located in Wyoming; and Barnett Shale field covering an area of 123,777 acres located in North Texas. Evolution Petroleum Corporation was founded in 2003 and is based in Houston, Texas.
Occidental Petroleum Company Profile (Get Rating)
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, Africa, and Latin America. 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; 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 trades around its assets consisting of transportation and storage capacity; and invests in entities. Occidental Petroleum Corporation was founded in 1920 and is headquartered in Houston, Texas.
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