Financial Contrast: HighPeak Energy (NASDAQ:HPK) & Devon Energy (NYSE:DVN)

HighPeak Energy (NASDAQ:HPKGet Free Report) and Devon Energy (NYSE:DVNGet Free Report) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.

Institutional and Insider Ownership

24.1% of HighPeak Energy shares are owned by institutional investors. Comparatively, 69.7% of Devon Energy shares are owned by institutional investors. 77.5% of HighPeak Energy shares are owned by company insiders. Comparatively, 0.7% of Devon Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for HighPeak Energy and Devon Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HighPeak Energy 1 1 0 0 1.50
Devon Energy 0 10 15 0 2.60

HighPeak Energy currently has a consensus price target of $11.50, indicating a potential upside of 52.93%. Devon Energy has a consensus price target of $43.9259, indicating a potential upside of 30.34%. Given HighPeak Energy’s higher probable upside, analysts clearly believe HighPeak Energy is more favorable than Devon Energy.

Dividends

HighPeak Energy pays an annual dividend of $0.16 per share and has a dividend yield of 2.1%. Devon Energy pays an annual dividend of $0.96 per share and has a dividend yield of 2.8%. HighPeak Energy pays out 18.6% of its earnings in the form of a dividend. Devon Energy pays out 21.5% 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. HighPeak Energy has increased its dividend for 1 consecutive years and Devon Energy has increased its dividend for 1 consecutive years.

Volatility and Risk

HighPeak Energy has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Devon Energy has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.

Valuation & Earnings

This table compares HighPeak Energy and Devon Energy”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HighPeak Energy $1.07 billion 0.89 $95.07 million $0.86 8.74
Devon Energy $15.94 billion 1.34 $2.89 billion $4.46 7.56

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

Profitability

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

Net Margins Return on Equity Return on Assets
HighPeak Energy 12.59% 7.10% 3.75%
Devon Energy 16.57% 18.59% 8.95%

Summary

Devon Energy beats HighPeak Energy on 12 of the 16 factors compared between the two stocks.

About HighPeak Energy

(Get Free Report)

HighPeak Energy, Inc., an independent oil and natural gas company, engages in the exploration, development, and production of crude oil, natural gas, and natural gas liquids reserves in the Permian Basin in West Texas and Eastern New Mexico. The company was incorporated in 2019 and is headquartered in Fort Worth, Texas.

About Devon Energy

(Get Free Report)

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.

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