Reviewing EOG Resources (EOG) and Callon Petroleum (CPE)
EOG Resources (NYSE: EOG) and Callon Petroleum (NYSE:CPE) are both mid-cap oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.
Insider and Institutional Ownership
84.7% of EOG Resources shares are owned by institutional investors. 0.5% of EOG Resources shares are owned by insiders. Comparatively, 0.8% of Callon Petroleum shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares EOG Resources and Callon Petroleum’s gross 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|
|Callon Petroleum||$200.85 million||10.90||-$91.81 million||$0.44||24.66|
Callon Petroleum has higher revenue, but lower earnings than EOG Resources. Callon Petroleum is trading at a lower price-to-earnings ratio than EOG Resources, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
EOG Resources has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, Callon Petroleum has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.
This table compares EOG Resources and Callon Petroleum’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and price targets for EOG Resources and Callon Petroleum, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
EOG Resources presently has a consensus target price of $109.95, indicating a potential upside of 8.16%. Callon Petroleum has a consensus target price of $17.45, indicating a potential upside of 60.87%. Given Callon Petroleum’s stronger consensus rating and higher probable upside, analysts plainly believe Callon Petroleum is more favorable than EOG Resources.
EOG Resources pays an annual dividend of $0.67 per share and has a dividend yield of 0.7%. Callon Petroleum 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.
Callon Petroleum beats EOG Resources on 12 of the 16 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 Callon Petroleum
Callon Petroleum Company is an independent oil and natural gas company. The Company is engaged in the exploration, development, acquisition and production of oil and natural gas properties. The Company focuses on the acquisition and development of unconventional oil and natural gas reserves in the Permian Basin. The Permian Basin is located in West Texas and southeastern New Mexico and consisted of three primary sub-basins: the Midland Basin, the Delaware Basin, and the Central Basin Platform as of December 31, 2016. The Company’s drilling activity focuses on the horizontal development of various prospective intervals in the Midland Basin, including multiple levels of the Wolfcamp formation and the Lower Spraberry shale. It owns additional immaterial properties in Louisiana. As of December 31, 2016, the Company had owned leaseholds in 39,570 net acres in the Permian Basin, all of which was located in the Midland Basin.
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