Analyzing Gibson Energy (OTCMKTS:GBNXF) and Devon Energy (NYSE:DVN)

Gibson Energy (OTCMKTS:GBNXF) and Devon Energy (NYSE:DVN) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Analyst Ratings

This is a summary of current ratings and target prices for Gibson Energy and Devon Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gibson Energy	0	4	4	1	2.67
Devon Energy	0	5	22	2	2.90

Devon Energy has a consensus price target of $59.23, indicating a potential upside of 21.55%. Given Devon Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Devon Energy is more favorable than Gibson Energy.

Insider & Institutional Ownership

0.2% of Gibson Energy shares are owned by institutional investors. Comparatively, 69.7% of Devon Energy shares are owned by institutional investors. 4.6% 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.

Volatility & Risk

Gibson Energy has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, Devon Energy has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500.

Valuation & Earnings

This table compares Gibson Energy and Devon Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gibson Energy	$7.65 billion	0.51	$141.45 million	$0.71	31.82
Devon Energy	$17.19 billion	3.12	$2.64 billion	$4.21	11.58

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gibson Energy	1.32%	18.20%	3.41%
Devon Energy	16.67%	14.93%	7.91%

Dividends

Gibson Energy pays an annual dividend of $1.30 per share and has a dividend yield of 5.8%. Devon Energy pays an annual dividend of $1.28 per share and has a dividend yield of 2.6%. Gibson Energy pays out 183.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Devon Energy pays out 30.4% of its earnings in the form of a dividend. Devon Energy has increased its dividend for 1 consecutive years.

Summary

Devon Energy beats Gibson Energy on 14 of the 18 factors compared between the two stocks.

About Gibson Energy

Gibson Energy Inc., together with its subsidiaries, engages in the gathering, storage, optimization, processing, and marketing of liquids and refined products in Canada and the United States. It operates through Infrastructure and Marketing segments. The Infrastructure segment operates a network of liquid infrastructure assets that include oil terminals, rail loading and unloading facilities, gathering pipelines, a crude oil processing facility, and other terminals. The Marketing segment purchases, sells, stores, and optimizes hydrocarbon products, including crude oil, natural gas liquids, road asphalt, roofing flux, frac oils, light and heavy straight run distillates, vacuum gas oil, and an oil-based mud product. It serves producers, refiners, marketers, and integrated companies, as well as exploration and production companies. The company was formerly known as Gibson Energy Holdings ULC and changed its name to Gibson Energy Inc. in April 2011. Gibson Energy Inc. was founded in 1953 and is headquartered in Calgary, Canada.

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.