Head-To-Head Survey: Northern Oil and Gas (NYSE:NOG) & Devon Energy (NYSE:DVN)

Northern Oil and Gas (NYSE:NOGGet Rating) and Devon Energy (NYSE:DVNGet Rating) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Earnings & Valuation

This table compares Northern Oil and Gas and Devon Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Northern Oil and Gas $496.90 million 4.05 $6.36 million ($2.21) -11.76
Devon Energy $12.21 billion 3.50 $2.81 billion $5.33 12.14

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

Risk & Volatility

Northern Oil and Gas has a beta of 2.18, indicating that its share price is 118% more volatile than the S&P 500. Comparatively, Devon Energy has a beta of 2.61, indicating that its share price is 161% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Northern Oil and Gas and Devon Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Northern Oil and Gas 0 0 1 0 3.00
Devon Energy 0 5 8 1 2.71

Devon Energy has a consensus target price of $67.35, suggesting a potential upside of 4.13%. Given Devon Energy’s higher probable upside, analysts clearly believe Devon Energy is more favorable than Northern Oil and Gas.

Profitability

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

Net Margins Return on Equity Return on Assets
Northern Oil and Gas 1.28% -1,009.95% 29.00%
Devon Energy 25.69% 36.57% 15.88%

Dividends

Northern Oil and Gas pays an annual dividend of $0.56 per share and has a dividend yield of 2.2%. Devon Energy pays an annual dividend of $4.00 per share and has a dividend yield of 6.2%. Northern Oil and Gas pays out -25.3% of its earnings in the form of a dividend. Devon Energy pays out 75.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Northern Oil and Gas has increased its dividend for 1 consecutive years and Devon Energy has increased its dividend for 5 consecutive years. Devon Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

89.8% of Northern Oil and Gas shares are held by institutional investors. Comparatively, 87.0% of Devon Energy shares are held by institutional investors. 4.4% of Northern Oil and Gas shares are held by insiders. Comparatively, 0.8% of Devon Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Devon Energy beats Northern Oil and Gas on 12 of the 18 factors compared between the two stocks.

About Northern Oil and Gas (Get Rating)

Northern Oil and Gas, Inc., an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the United States. The company primarily holds interests in the Williston Basin, the Appalachian Basin, and the Permian Basin in the United States. As of December 31, 2021, it owned working interests in 7,436 gross producing wells; and had proved reserves of 287,682 million barrels of oil equivalent. The company is based in Minnetonka, Minnesota.

About Devon Energy (Get Rating)

Devon Energy Corporation, an independent energy company, primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. It operates approximately 5,134 gross wells. Devon Energy Corporation was incorporated in 1971 and is headquartered in Oklahoma City, Oklahoma.

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