Devon Energy (NYSE:DVN) versus Murphy Oil (NYSE:MUR) Financial Contrast

Murphy Oil (NYSE:MUR) and Devon Energy (NYSE:DVN) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, dividends, risk, institutional ownership and valuation.

Volatility and Risk

Murphy Oil has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, Devon Energy has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500.

Profitability

This table compares Murphy Oil and Devon Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Murphy Oil	3.02%	3.09%	1.65%
Devon Energy	13.71%	15.22%	7.39%

Institutional & Insider Ownership

78.3% of Murphy Oil shares are owned by institutional investors. Comparatively, 69.7% of Devon Energy shares are owned by institutional investors. 5.8% of Murphy Oil shares are owned by insiders. Comparatively, 4.6% of Devon Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Murphy Oil and Devon Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Murphy Oil	2	11	3	0	2.06
Devon Energy	0	5	24	2	2.90

Murphy Oil presently has a consensus price target of $37.75, indicating a potential upside of 10.25%. Devon Energy has a consensus price target of $58.44, indicating a potential upside of 38.47%. Given Devon Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Devon Energy is more favorable than Murphy Oil.

Earnings and Valuation

This table compares Murphy Oil and Devon Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Murphy Oil	$2.72 billion	1.81	$104.23 million	$0.59	58.03
Devon Energy	$16.54 billion	1.59	$2.64 billion	$3.59	11.76

Devon Energy has higher revenue and earnings than Murphy Oil. Devon Energy is trading at a lower price-to-earnings ratio than Murphy Oil, indicating that it is currently the more affordable of the two stocks.

Dividends

Murphy Oil pays an annual dividend of $1.40 per share and has a dividend yield of 4.1%. Devon Energy pays an annual dividend of $1.28 per share and has a dividend yield of 3.0%. Murphy Oil pays out 237.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Devon Energy pays out 35.7% of its earnings in the form of a dividend. Murphy Oil has raised its dividend for 5 consecutive years and Devon Energy has raised its dividend for 1 consecutive years. Murphy Oil is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Devon Energy beats Murphy Oil on 11 of the 18 factors compared between the two stocks.

About Murphy Oil

Murphy Oil Corporation, together with its subsidiaries, operates as an oil and gas exploration and production company in the United States, Canada, and internationally. It explores for and produces crude oil, natural gas, and natural gas liquids. The company was formerly known as Murphy Corporation and changed its name to Murphy Oil Corporation in 1964. The company was incorporated in 1950 and is headquartered in Houston, Texas.

About Devon Energy

Devon Energy Corporation, an independent energy company, engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. It operates in Delaware, Eagle Ford, Anadarko, Williston, and Powder River Basins. The company was founded in 1971 and is headquartered in Oklahoma City, Oklahoma.