EOG Resources (NYSE:EOG) & Coterra Energy (NYSE:CTRA) Head to Head Survey

Coterra Energy (NYSE:CTRA) and EOG Resources (NYSE:EOG) are both large-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Dividends

Coterra Energy pays an annual dividend of $0.88 per share and has a dividend yield of 2.5%. EOG Resources pays an annual dividend of $4.08 per share and has a dividend yield of 2.9%. Coterra Energy pays out 38.6% of its earnings in the form of a dividend. EOG Resources pays out 44.8% 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. Coterra Energy has increased its dividend for 4 consecutive years and EOG Resources has increased its dividend for 8 consecutive years. EOG Resources is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Coterra Energy and EOG Resources”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coterra Energy	$7.65 billion	3.43	$1.72 billion	$2.28	15.17
EOG Resources	$22.58 billion	3.38	$4.98 billion	$9.11	15.65

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

Profitability

This table compares Coterra Energy and EOG Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coterra Energy	22.46%	10.43%	6.33%
EOG Resources	22.00%	18.67%	11.25%

Volatility and Risk

Coterra Energy has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500. Comparatively, EOG Resources has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500.

Insider and Institutional Ownership

87.9% of Coterra Energy shares are held by institutional investors. Comparatively, 89.9% of EOG Resources shares are held by institutional investors. 1.7% of Coterra Energy shares are held by insiders. Comparatively, 0.1% of EOG Resources shares are held by 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 current ratings and recommmendations for Coterra Energy and EOG Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coterra Energy	0	9	16	0	2.64
EOG Resources	0	18	11	1	2.43

Coterra Energy presently has a consensus target price of $36.17, suggesting a potential upside of 4.61%. EOG Resources has a consensus target price of $145.04, suggesting a potential upside of 1.70%. Given Coterra Energy’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Coterra Energy is more favorable than EOG Resources.

Summary

EOG Resources beats Coterra Energy on 11 of the 18 factors compared between the two stocks.

About Coterra Energy

Coterra Energy Inc., an independent oil and gas company, engages in the development, exploration, and production of oil, natural gas, and natural gas liquids in the United States. The company’s properties include the Marcellus Shale with approximately 186,000 net acres in the dry gas window of the play located in Susquehanna County, Pennsylvania; Permian Basin properties with approximately 296,000 net acres located in west Texas and southeast New Mexico; and Anadarko Basin properties with approximately 182,000 net acres located in Oklahoma. It also operates natural gas and saltwater gathering and disposal systems in Texas. The company sells its natural gas to industrial customers, local distribution companies, oil and gas marketers, major energy companies, pipeline companies, and power generation facilities. Coterra Energy Inc. was incorporated in 1989 and is headquartered in Houston, Texas.

About EOG Resources

EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, natural gas liquids, and natural gas primarily in producing basins in the United States, the Republic of Trinidad and Tobago and internationally. The company was formerly known as Enron Oil & Gas Company. EOG Resources, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.