Cameco (NYSE:CCJ) versus Devon Energy (NYSE:DVN) Head-To-Head Review

Cameco (NYSE:CCJ – Get Free Report) and Devon Energy (NYSE:DVN – Get Free Report) are both large-cap energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, valuation and risk.

Analyst Recommendations

This is a summary of recent recommendations for Cameco and Devon Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cameco 1 4 12 0 2.65
Devon Energy 0 4 24 2 2.93

Cameco currently has a consensus price target of $148.68, suggesting a potential upside of 68.74%. Devon Energy has a consensus price target of $60.19, suggesting a potential upside of 24.76%. Given Cameco’s higher probable upside, analysts clearly believe Cameco is more favorable than Devon Energy.

Profitability

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

Net Margins Return on Equity Return on Assets
Cameco 10.20% 7.59% 5.23%
Devon Energy 16.67% 14.93% 7.91%

Insider & Institutional Ownership

70.2% of Cameco shares are owned by institutional investors. Comparatively, 69.7% of Devon Energy shares are owned by institutional investors. 1.0% of Cameco shares are owned by insiders. Comparatively, 4.6% of Devon Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Cameco pays an annual dividend of $0.17 per share and has a dividend yield of 0.2%. Devon Energy pays an annual dividend of $1.28 per share and has a dividend yield of 2.7%. Cameco pays out 28.8% of its earnings in the form of a dividend. Devon Energy pays out 30.4% 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. Cameco has raised its dividend for 1 consecutive years and Devon Energy has raised its dividend for 1 consecutive years.

Risk & Volatility

Cameco has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Devon Energy has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.

Earnings & Valuation

This table compares Cameco and Devon Energy”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cameco $2.49 billion 15.40 $421.96 million $0.59 149.34
Devon Energy $19.68 billion 2.70 $2.64 billion $4.21 11.46

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

Summary

Devon Energy beats Cameco on 11 of the 17 factors compared between the two stocks.

About Cameco

(Get Free Report)

Cameco Corporation provides uranium for the generation of electricity. It operates through Uranium, Fuel Services, Westinghouse segments. The Uranium segment is involved in the exploration for, mining, and milling, purchase, and sale of uranium concentrate. The Fuel Services segment engages in the refining, conversion, and fabrication of uranium concentrate, as well as the purchase and sale of conversion services. This segment also produces CANDU reactor fuel bundles and other reactor components. The company offers nuclear fuel processing services. The Westinghouse segment engages in the manufacture of nuclear reactor technology original equipment. This segment provides products and services to commercial utilities and government agencies; and outage and maintenance services, engineering support, instrumentation and controls equipment, plant modification, and components and parts to nuclear reactors. It sells its uranium and fuel services to nuclear utilities in the Americas, Europe, and Asia. Cameco Corporation was incorporated in 1987 and is headquartered in Saskatoon, Canada.

About Devon Energy

(Get Free Report)

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.

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