Head-To-Head Contrast: Vitesse Energy (NYSE:VTS) vs. Devon Energy (NYSE:DVN)

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

Insider & Institutional Ownership

51.6% of Vitesse Energy shares are held by institutional investors. Comparatively, 69.7% of Devon Energy shares are held by institutional investors. 13.9% of Vitesse Energy shares are held by insiders. Comparatively, 4.6% of Devon Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vitesse Energy	-7.15%	3.53%	2.43%
Devon Energy	13.71%	15.22%	7.39%

Earnings & Valuation

This table compares Vitesse Energy 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
Vitesse Energy	$273.99 million	2.43	$25.28 million	($0.50)	-31.91
Devon Energy	$17.19 billion	1.52	$2.64 billion	$3.59	11.71

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

Dividends

Vitesse Energy pays an annual dividend of $1.75 per share and has a dividend yield of 11.0%. Devon Energy pays an annual dividend of $1.28 per share and has a dividend yield of 3.0%. Vitesse Energy pays out -350.0% of its earnings in the form of a dividend. Devon Energy pays out 35.7% 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. Vitesse Energy has raised its dividend for 2 consecutive years and Devon Energy has raised its dividend for 1 consecutive years. Vitesse Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Vitesse Energy has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Devon Energy has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Vitesse Energy and Devon Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vitesse Energy	0	3	0	0	2.00
Devon Energy	0	5	23	3	2.94

Vitesse Energy presently has a consensus target price of $20.00, indicating a potential upside of 25.35%. Devon Energy has a consensus target price of $58.85, indicating a potential upside of 39.95%. Given Devon Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Devon Energy is more favorable than Vitesse Energy.

Summary

Devon Energy beats Vitesse Energy on 12 of the 18 factors compared between the two stocks.

About Vitesse Energy

Vitesse Energy, Inc., together with its subsidiaries, engages in the acquisition, development, and production of non-operated oil and natural gas properties in the United States. It owns and acquires non-operated working interest and royalty interest ownership in the Williston Basin properties located in North Dakota and Montana. The company also owns non-operated interests in the Central Rockies properties located in Colorado and Wyoming. Vitesse Energy, Inc. was founded in 2014 and is based in Centennial, Colorado.

About Devon Energy

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.