Critical Comparison: Devon Energy Corporation (DVN) and MV Oil Trust (MVO)
Devon Energy Corporation (NYSE: DVN) and MV Oil Trust (NYSE:MVO) are both oil & gas exploration and production – nec companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.
Risk & Volatility
Devon Energy Corporation has a beta of 2.22, suggesting that its share price is 122% more volatile than the S&P 500. Comparatively, MV Oil Trust has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500.
Earnings & Valuation
This table compares Devon Energy Corporation and MV Oil Trust’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Devon Energy Corporation||$12.20 billion||1.66||-$3.30 billion||$2.94||13.16|
|MV Oil Trust||$5.50 million||11.73||$4.60 million||$0.75||7.48|
MV Oil Trust has higher revenue, but lower earnings than Devon Energy Corporation. MV Oil Trust is trading at a lower price-to-earnings ratio than Devon Energy Corporation, indicating that it is currently the more affordable of the two stocks.
Devon Energy Corporation pays an annual dividend of $0.24 per share and has a dividend yield of 0.6%. MV Oil Trust pays an annual dividend of $0.50 per share and has a dividend yield of 8.9%. Devon Energy Corporation pays out 8.2% of its earnings in the form of a dividend. MV Oil Trust pays out 66.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
This is a summary of recent recommendations for Devon Energy Corporation and MV Oil Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Devon Energy Corporation||0||4||14||0||2.78|
|MV Oil Trust||0||0||0||0||N/A|
Devon Energy Corporation presently has a consensus target price of $45.88, suggesting a potential upside of 18.62%. Given Devon Energy Corporation’s higher probable upside, equities analysts plainly believe Devon Energy Corporation is more favorable than MV Oil Trust.
This table compares Devon Energy Corporation and MV Oil Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Devon Energy Corporation||11.62%||6.88%||2.88%|
|MV Oil Trust||92.12%||57.73%||57.73%|
Insider & Institutional Ownership
77.3% of Devon Energy Corporation shares are held by institutional investors. Comparatively, 9.6% of MV Oil Trust shares are held by institutional investors. 0.5% of Devon Energy Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Devon Energy Corporation beats MV Oil Trust on 9 of the 15 factors compared between the two stocks.
About Devon Energy Corporation
Devon Energy Corporation is an independent energy company. The Company also controls EnLink Midstream Partners, L.P. (EnLink). The Company’s segments include U.S., Canada and EnLink. The Company is engaged primarily in the exploration, development and production of oil, natural gas and natural gas liquids (NGLs). The Company’s operations are concentrated in various North American onshore areas in the United States and Canada. The Company’s U.S. and Canada segments are primarily engaged in oil and gas exploration and production activities. EnLink is a master limited partnership (MLP) with a midstream business and operations located across the United States. EnLink focuses on providing gathering, transmission, processing, storage, fractionation and marketing to upstream oil and natural gas producers. The Company’s properties include Barnett Shale, Delaware Basin, Eagle Ford, Heavy Oil, Rockies Oil and STACK.
About MV Oil Trust
MV Oil Trust (the Trust) is a statutory trust. The Trust acquires and holds a term net profits interest for the benefit of the Trust unitholders. Its underlying properties consist of MV Partners, LLC’s (MV Partners) net interests in all of its oil and natural gas properties, which are located in the Mid-Continent region in the States of Kansas and Colorado. These oil and gas properties include approximately 1,000 producing oil and gas wells. The underlying properties located in the El Dorado Area are operated on behalf of MV Partners by Vess Oil Corporation (Vess Oil) and are located in the El Dorado, Augusta and Valley Center Fields. Each of Vess Oil and Murfin Drilling Company, Inc. (Murfin Drilling) operate leases on behalf of MV Partners included in the underlying properties that are located in the Northwest Kansas Area. The primary fields in this area are the Bemis-Shutts, Trapp, Ray and Hansen Fields.
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