Critical Review: EOG Resources (EOG) versus Its Rivals
EOG Resources (NYSE: EOG) is one of 223 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it compare to its rivals? We will compare EOG Resources to related businesses based on the strength of its institutional ownership, valuation, profitability, earnings, dividends, risk and analyst recommendations.
EOG Resources pays an annual dividend of $0.67 per share and has a dividend yield of 0.7%. 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. As a group, “Oil & Gas Exploration and Production” companies pay a dividend yield of 1.7% and pay out 179.2% of their earnings in the form of a dividend. EOG Resources lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.
This table compares EOG Resources and its rivals gross revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|EOG Resources||$7.65 billion||-$1.10 billion||10,143.00|
|EOG Resources Competitors||$1.86 billion||-$438.87 million||-28.26|
EOG Resources has higher revenue, but lower earnings than its rivals. EOG Resources is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
This table compares EOG Resources and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|EOG Resources Competitors||-280.06%||24.97%||6.02%|
This is a summary of current recommendations and price targets for EOG Resources and its rivals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|EOG Resources Competitors||1471||7628||12343||260||2.52|
EOG Resources presently has a consensus price target of $109.86, suggesting a potential upside of 8.31%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 35.63%. Given EOG Resources’ rivals higher probable upside, analysts clearly believe EOG Resources has less favorable growth aspects than its rivals.
Insider & Institutional Ownership
85.3% of EOG Resources shares are held by institutional investors. Comparatively, 62.2% of shares of all “Oil & Gas Exploration and Production” companies are held by institutional investors. 0.5% of EOG Resources shares are held by insiders. Comparatively, 12.5% of shares of all “Oil & Gas Exploration and Production” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility and Risk
EOG Resources has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, EOG Resources’ rivals have a beta of 1.38, indicating that their average share price is 38% more volatile than the S&P 500.
EOG Resources rivals beat EOG Resources on 9 of the 15 factors compared.
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.
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