Financial Survey: Tourmaline Oil (OTCMKTS:TRMLF) & Ovintiv (NYSE:OVV)

Tourmaline Oil (OTCMKTS:TRMLF) and Ovintiv (NYSE:OVV) are both large-cap energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Tourmaline Oil and Ovintiv, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tourmaline Oil	1	1	0	1	2.33
Ovintiv	0	2	12	2	3.00

Ovintiv has a consensus target price of $54.69, indicating a potential upside of 31.57%. Given Ovintiv’s stronger consensus rating and higher possible upside, analysts plainly believe Ovintiv is more favorable than Tourmaline Oil.

Valuation & Earnings

This table compares Tourmaline Oil and Ovintiv”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tourmaline Oil	$4.41 billion	4.29	$922.55 million	$2.43	20.15
Ovintiv	$9.15 billion	1.18	$1.13 billion	$2.35	17.69

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

Profitability

This table compares Tourmaline Oil and Ovintiv’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tourmaline Oil	21.16%	8.30%	5.79%
Ovintiv	6.84%	14.89%	7.85%

Insider & Institutional Ownership

1.8% of Tourmaline Oil shares are held by institutional investors. Comparatively, 83.8% of Ovintiv shares are held by institutional investors. 1.7% of Ovintiv shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Tourmaline Oil pays an annual dividend of $1.46 per share and has a dividend yield of 3.0%. Ovintiv pays an annual dividend of $1.20 per share and has a dividend yield of 2.9%. Tourmaline Oil pays out 60.1% of its earnings in the form of a dividend. Ovintiv pays out 51.1% 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. Ovintiv has increased its dividend for 4 consecutive years.

Risk & Volatility

Tourmaline Oil has a beta of -0.42, suggesting that its stock price is 142% less volatile than the S&P 500. Comparatively, Ovintiv has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.

Summary

Ovintiv beats Tourmaline Oil on 13 of the 18 factors compared between the two stocks.

About Tourmaline Oil

Tourmaline Oil Corp. explores for and develops oil and natural gas properties in the Western Canadian Sedimentary Basin. The company holds interests in properties located in the Alberta Deep Basin, Northeast British Columbia Montney, and the Peace River High Triassic oil complex. Tourmaline Oil Corp. was incorporated in 2008 and is headquartered in Calgary, Canada.

About Ovintiv

Ovintiv Inc., together with its subsidiaries, explores, develops, produces, and markets natural gas, oil, and natural gas liquids in the United States and Canada. The company operates through USA Operations, Canadian Operations, and Market Optimization segments. Its principal assets include Permian in west Texas and Anadarko in west-central Oklahoma; and Montney in northeast British Columbia and northwest Alberta. In addition, the company's upstream assets comprise Bakken in northwest North Dakota, and Uinta in central Utah; and Horn River in northeast British Columbia. The company was formerly known as Encana Corporation and changed its name to Ovintiv Inc. in January 2020. Ovintiv Inc. was incorporated in 2020 and is based in Denver, Colorado.