Head to Head Review: Coterra Energy (NYSE:CTRA) and Devon Energy (NYSE:DVN)

Coterra Energy (NYSE:CTRA) and Devon Energy (NYSE:DVN) are both large-cap oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Dividends

Coterra Energy pays an annual dividend of $0.84 per share and has a dividend yield of 3.4%. Devon Energy pays an annual dividend of $0.88 per share and has a dividend yield of 2.1%. Coterra Energy pays out 48.6% of its earnings in the form of a dividend. Devon Energy pays out 16.8% 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.

Earnings and Valuation

This table compares Coterra Energy and Devon Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coterra Energy	$5.66 billion	3.27	$1.63 billion	$1.73	14.38
Devon Energy	$15.49 billion	1.73	$3.75 billion	$5.24	8.10

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

Volatility & Risk

Coterra Energy has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500. Comparatively, Devon Energy has a beta of 2.02, meaning that its share price is 102% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Coterra Energy and Devon Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coterra Energy	0	2	16	1	2.95
Devon Energy	0	7	14	0	2.67

Coterra Energy currently has a consensus target price of $32.24, indicating a potential upside of 29.62%. Devon Energy has a consensus target price of $53.79, indicating a potential upside of 26.80%. Given Coterra Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Coterra Energy is more favorable than Devon Energy.

Institutional & Insider Ownership

87.9% of Coterra Energy shares are held by institutional investors. Comparatively, 69.7% of Devon Energy shares are held by institutional investors. 1.7% of Coterra Energy shares are held by company insiders. Comparatively, 0.7% of Devon Energy 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Coterra Energy	23.18%	10.48%	6.62%
Devon Energy	22.60%	29.14%	14.46%

Summary

Coterra Energy beats Devon Energy on 10 of the 17 factors compared between the two stocks.

About Coterra Energy

Coterra Energy Inc., an independent oil and gas company, engages in the development, exploration, and production of oil, natural gas, and natural gas liquids in the United States. The company's properties include the Marcellus Shale with approximately 186,000 net acres in the dry gas window of the play located in Susquehanna County, Pennsylvania; Permian Basin properties with approximately 296,000 net acres located in west Texas and southeast New Mexico; and Anadarko Basin properties with approximately 182,000 net acres located in Oklahoma. It also operates natural gas and saltwater gathering and disposal systems in Texas. The company sells its natural gas to industrial customers, local distribution companies, oil and gas marketers, major energy companies, pipeline companies, and power generation facilities. Coterra Energy Inc. was incorporated in 1989 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.