Critical Contrast: EOG Resources (EOG) & Continental Resources (CLR)
EOG Resources (NYSE: EOG) and Continental Resources (NYSE:CLR) are both large-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.
Insider and Institutional Ownership
84.7% of EOG Resources shares are held by institutional investors. Comparatively, 23.1% of Continental Resources shares are held by institutional investors. 0.5% of EOG Resources shares are held by insiders. Comparatively, 76.9% of Continental Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a breakdown of recent recommendations for EOG Resources and Continental Resources, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
EOG Resources currently has a consensus target price of $109.95, indicating a potential upside of 8.16%. Continental Resources has a consensus target price of $46.39, indicating a potential downside of 0.74%. Given EOG Resources’ stronger consensus rating and higher possible upside, equities research analysts plainly believe EOG Resources is more favorable than Continental Resources.
EOG Resources pays an annual dividend of $0.67 per share and has a dividend yield of 0.7%. Continental Resources does not pay a dividend. EOG Resources pays out 6,700.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility & Risk
EOG Resources has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Continental Resources has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500.
Earnings and Valuation
This table compares EOG Resources and Continental Resources’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|EOG Resources||$7.65 billion||7.68||-$1.10 billion||$0.01||10,166.00|
|Continental Resources||$1.98 billion||8.85||-$399.67 million||($0.07)||-667.48|
Continental Resources has higher revenue, but lower earnings than EOG Resources. Continental Resources is trading at a lower price-to-earnings ratio than EOG Resources, indicating that it is currently the more affordable of the two stocks.
This table compares EOG Resources and Continental Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
EOG Resources beats Continental Resources on 9 of the 15 factors compared between the two stocks.
About EOG Resources
EOG Resources, Inc. explores for, develops, produces and markets crude oil and natural gas in major producing basins in the United States, The Republic of Trinidad and Tobago, the United Kingdom, The People’s Republic of China, Canada and, from time to time, select other international areas. Its operations are all crude oil and natural gas exploration and production related. As of December 31, 2016, its total estimated net proved reserves were over 2,147 million barrels of oil equivalent (MMBoe), of which over 1178 million barrels (MMBbl) were crude oil and condensate reserves, over 416 MMBbl were natural gas liquids reserves and over 3318 billion cubic feet, or 553 MMBoe, were natural gas reserves. Its operations are focused in the productive basins in the United States with a focus on crude oil and, to a lesser extent, liquids-rich natural gas plays. It has operations offshore Trinidad, in the United Kingdom East Irish Sea, in the China Sichuan Basin and in Canada.
About Continental Resources
Continental Resources, Inc. is a crude oil and natural gas company with properties in the North, South and East regions of the United States. The North region consists of properties north of Kansas and west of the Mississippi River and includes North Dakota Bakken, Montana Bakken and the Red River units. The South region includes properties south of Nebraska and west of the Mississippi River including various plays in the South Central Oklahoma Oil Province (SCOOP), Sooner Trend Anadarko Canadian Kingfisher (STACK), and Arkoma Woodford areas of Oklahoma. The East region is consists of undeveloped leasehold acreage east of the Mississippi River with no drilling or production operations. As of December 31, 2016, its estimated proved reserves were 1,275 million barrels of oil equivalent (MMBoe), with estimated proved developed reserves of 519 MMBoe. As of December 31, 2016, its average daily production from South region properties was 91,088 barrels of oil equivalent (Boe) per day.
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