Occidental Petroleum Corporation (OXY) vs. Newfield Exploration (NFX) Critical Contrast
Occidental Petroleum Corporation (NYSE: OXY) and Newfield Exploration (NYSE:NFX) are both mid-cap energy companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
This table compares Occidental Petroleum Corporation and Newfield Exploration’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Occidental Petroleum Corporation||4.33%||1.31%||0.65%|
Insider & Institutional Ownership
80.8% of Occidental Petroleum Corporation shares are held by institutional investors. Comparatively, 98.8% of Newfield Exploration shares are held by institutional investors. 0.3% of Occidental Petroleum Corporation shares are held by insiders. Comparatively, 0.5% of Newfield Exploration shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Risk & Volatility
Occidental Petroleum Corporation has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Newfield Exploration has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500.
This is a summary of recent ratings and target prices for Occidental Petroleum Corporation and Newfield Exploration, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Occidental Petroleum Corporation||2||9||7||0||2.28|
Occidental Petroleum Corporation currently has a consensus target price of $66.53, indicating a potential downside of 1.88%. Newfield Exploration has a consensus target price of $38.90, indicating a potential upside of 29.62%. Given Newfield Exploration’s stronger consensus rating and higher possible upside, analysts clearly believe Newfield Exploration is more favorable than Occidental Petroleum Corporation.
Earnings and Valuation
This table compares Occidental Petroleum Corporation and Newfield Exploration’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Occidental Petroleum Corporation||$10.40 billion||4.99||-$574.00 million||$0.71||95.51|
|Newfield Exploration||$1.47 billion||4.07||-$1.23 billion||$1.73||17.35|
Occidental Petroleum Corporation has higher revenue and earnings than Newfield Exploration. Newfield Exploration is trading at a lower price-to-earnings ratio than Occidental Petroleum Corporation, indicating that it is currently the more affordable of the two stocks.
Occidental Petroleum Corporation pays an annual dividend of $3.08 per share and has a dividend yield of 4.5%. Newfield Exploration does not pay a dividend. Occidental Petroleum Corporation pays out 433.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Occidental Petroleum Corporation has increased its dividend for 14 consecutive years.
Newfield Exploration beats Occidental Petroleum Corporation on 11 of the 17 factors compared between the two stocks.
About Occidental Petroleum Corporation
Occidental Petroleum Corporation (Occidental) is an oil and gas exploration and production company. The Company operates through three segments: oil and gas, chemical (OxyChem), and midstream and marketing. The oil and gas segment explores for, develops and produces oil and condensate, natural gas liquids (NGLs) and natural gas. The OxyChem segment manufactures and markets basic chemicals and vinyls. The midstream and marketing segment gathers, processes, transports, stores, purchases and markets oil, condensate, NGLs, natural gas, carbon dioxide (CO2) and power. The Company also trades around its assets, including transportation and storage capacity. Additionally, the midstream and marketing segment invests in entities that conduct similar activities. Occidental’s domestic upstream oil and gas operations are located in New Mexico and Texas. Its international operations are located in Bolivia, Colombia, Oman, Qatar and the United Arab Emirates (UAE).
About Newfield Exploration
Newfield Exploration Company is an independent exploration and production company. It is engaged in the exploration, development and production of crude oil, natural gas and natural gas liquids. Its operating segments are the United States and China. Its the United States operations are onshore and focus primarily on large scale, liquids resource plays. Its principal areas of operation are the Anadarko and Arkoma basins of Oklahoma, the Williston Basin of North Dakota and the Uinta Basin of Utah. It has oil producing assets offshore China. As of December 31, 2016, its proved reserves of 513 million barrels of oil equivalents (MMBOE) consisted of 304 MMBOE proved developed producing, 10 MMBOE proved developed non-producing and 199 MMBOE proved undeveloped reserves. As of December 31, 2016, its proved liquids reserves were 285 million barrels of crude oil or other liquid hydrocarbons. As of December 31, 2016, 67% of its proved liquids reserves were crude oil or condensate.
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