Contrasting Altex Industries (OTCMKTS:ALTX) and EOG Resources (NYSE:EOG)

Altex Industries (OTCMKTS:ALTX) and EOG Resources (NYSE:EOG) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Analyst Recommendations

This is a summary of current ratings for Altex Industries and EOG Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Altex Industries	0	0	0	0	0.00
EOG Resources	0	16	11	1	2.46

EOG Resources has a consensus target price of $135.56, suggesting a potential upside of 25.55%. Given EOG Resources’ stronger consensus rating and higher possible upside, analysts clearly believe EOG Resources is more favorable than Altex Industries.

Institutional and Insider Ownership

89.9% of EOG Resources shares are held by institutional investors. 49.8% of Altex Industries shares are held by company insiders. Comparatively, 0.1% of EOG Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Altex Industries and EOG Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Altex Industries	-1,066.67%	-18.61%	-9.19%
EOG Resources	24.49%	19.80%	12.17%

Risk & Volatility

Altex Industries has a beta of 0.08, suggesting that its stock price is 92% less volatile than the S&P 500. Comparatively, EOG Resources has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Earnings and Valuation

This table compares Altex Industries and EOG Resources”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Altex Industries	$20,000.00	172.33	-$190,000.00	($0.02)	-15.40
EOG Resources	$23.70 billion	2.47	$6.40 billion	$10.04	10.75

EOG Resources has higher revenue and earnings than Altex Industries. Altex Industries is trading at a lower price-to-earnings ratio than EOG Resources, indicating that it is currently the more affordable of the two stocks.

Summary

EOG Resources beats Altex Industries on 13 of the 15 factors compared between the two stocks.

About Altex Industries

Altex Industries, Inc., through its subsidiary, Altex Oil Corporation, owns interests in productive onshore oil and gas properties located in Utah and Wyoming. The company was incorporated in 1985 and is based in Denver, Colorado.

About EOG Resources

EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, natural gas liquids, and natural gas primarily in producing basins in the United States, the Republic of Trinidad and Tobago and internationally. The company was formerly known as Enron Oil & Gas Company. EOG Resources, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.