EOG Resources (NYSE:EOG) & Its Rivals Critical Analysis

EOG Resources (NYSE: EOG) is one of 225 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it contrast to its peers? We will compare EOG Resources to similar companies based on the strength of its earnings, risk, institutional ownership, dividends, profitability, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for EOG Resources and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EOG Resources 0 6 18 0 2.75
EOG Resources Competitors 1502 7738 12581 271 2.53

EOG Resources currently has a consensus target price of $114.09, suggesting a potential downside of 0.91%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 15.64%. Given EOG Resources’ peers higher probable upside, analysts plainly believe EOG Resources has less favorable growth aspects than its peers.

Insider & Institutional Ownership

85.3% of EOG Resources shares are held by institutional investors. Comparatively, 62.2% of shares of all “Oil & Gas Exploration and Production” companies are held by institutional investors. 0.5% of EOG Resources shares are held by company insiders. Comparatively, 12.5% of shares of all “Oil & Gas Exploration and Production” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares EOG Resources and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EOG Resources 0.10% 1.73% 0.82%
EOG Resources Competitors -277.06% 26.12% 5.67%

Earnings & Valuation

This table compares EOG Resources and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
EOG Resources $7.65 billion -$1.10 billion 11,514.00
EOG Resources Competitors $1.86 billion -$438.87 million -13.38

EOG Resources has higher revenue, but lower earnings than its peers. EOG Resources is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

EOG Resources pays an annual dividend of $0.67 per share and has a dividend yield of 0.6%. 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. As a group, “Oil & Gas Exploration and Production” companies pay a dividend yield of 1.6% and pay out 136.2% of their earnings in the form of a dividend. EOG Resources lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk and Volatility

EOG Resources has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, EOG Resources’ peers have a beta of 1.40, meaning that their average share price is 40% more volatile than the S&P 500.

Summary

EOG Resources peers beat EOG Resources on 9 of the 15 factors compared.

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.

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