Denbury Resources (DNR) & Cabot Oil & Gas (COG) Financial Review
Denbury Resources (NYSE: DNR) and Cabot Oil & Gas (NYSE:COG) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.
Cabot Oil & Gas pays an annual dividend of $0.20 per share and has a dividend yield of 0.7%. Denbury Resources does not pay a dividend. Cabot Oil & Gas pays out -62.5% of its earnings in the form of a dividend.
This table compares Denbury Resources and Cabot Oil & Gas’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cabot Oil & Gas||-8.80%||6.63%||3.38%|
Earnings and Valuation
This table compares Denbury Resources and Cabot Oil & Gas’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Denbury Resources||$975.60 million||0.66||-$976.17 million||($0.90)||-1.78|
|Cabot Oil & Gas||$1.16 billion||11.11||-$417.12 million||($0.32)||-86.75|
Cabot Oil & Gas has higher revenue and earnings than Denbury Resources. Cabot Oil & Gas is trading at a lower price-to-earnings ratio than Denbury Resources, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Denbury Resources has a beta of 3.57, indicating that its stock price is 257% more volatile than the S&P 500. Comparatively, Cabot Oil & Gas has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.
This is a summary of recent ratings and target prices for Denbury Resources and Cabot Oil & Gas, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cabot Oil & Gas||0||7||14||0||2.67|
Denbury Resources currently has a consensus target price of $2.08, suggesting a potential upside of 30.21%. Cabot Oil & Gas has a consensus target price of $30.56, suggesting a potential upside of 10.07%. Given Denbury Resources’ higher possible upside, analysts clearly believe Denbury Resources is more favorable than Cabot Oil & Gas.
Insider & Institutional Ownership
80.3% of Denbury Resources shares are held by institutional investors. Comparatively, 95.7% of Cabot Oil & Gas shares are held by institutional investors. 1.2% of Denbury Resources shares are held by company insiders. Comparatively, 1.6% of Cabot Oil & Gas shares are held 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.
Cabot Oil & Gas beats Denbury Resources on 13 of the 15 factors compared between the two stocks.
About Denbury Resources
Denbury Resources Inc. is an independent oil and natural gas company. The Company’s operations are focused in two operating areas: the Gulf Coast and Rocky Mountain regions. Its properties with proved and producing reserves in the Gulf Coast region are situated in Mississippi, Texas, Louisiana and Alabama, and in the Rocky Mountain region are situated in Montana, North Dakota and Wyoming. It had an estimated proved oil and natural gas reserves of 254.5 million barrels of oil equivalent (MMBOE) as of December 31, 2016. Its primary Gulf Coast carbon dioxide (CO2) source is Jackson Dome, which is located near Jackson, Mississippi. Its mature group of properties includes the initial CO2 field, Little Creek, and other fields, including Brookhaven, Cranfield, Eucutta, Lockhart Crossing, Mallalieu and Soso fields. Its LaBarge Field is located in southwestern Wyoming. Its Riley Ridge Federal Unit is located in southwestern Wyoming and produces gas from the same LaBarge Field.
About Cabot Oil & Gas
Cabot Oil & Gas Corporation is an independent oil and gas company engaged in the development, exploitation and exploration of oil and gas properties. The Company operates in the segment of natural gas and oil development, exploitation, exploration and production, in the continental United States. Its assets are concentrated in areas with known hydrocarbon resources, which are conducive to multi-well, repeatable drilling programs. As of December 31, 2016, its exploration, development and production operations were primarily concentrated in two unconventional plays: the Marcellus Shale in northeast Pennsylvania and the Eagle Ford Shale in south Texas. The Company also has operations in various other unconventional and conventional plays throughout the continental United States. Its Marcellus Shale properties are principally located in Susquehanna County, Pennsylvania. Its properties in the Eagle Ford Shale are principally located in Atascosa, Frio and La Salle Counties, Texas.
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