Devon Energy Corporation (DVN) vs Occidental Petroleum Corporation (OXY)

Devon Energy Corporation and Occidental Petroleum Corporation are both Oil & Gas E&P companies. Occidental Petroleum Corporation is the larger, with a market value of $60.7B against $54.2B — 1.1× the size. Occidental Petroleum Corporation trades at the lower P/E: 9.5× against 12.0×. Occidental Petroleum Corporation grew revenue faster over the last twelve months: 18.5% against 14.6%. Occidental Petroleum Corporation has the higher net margin (27.3% vs 16.7%) and the higher return on invested capital (6.85% vs 5.05%). Both pay a dividend; Devon Energy Corporation yields more (2.21% vs 1.67%). Across the 22 metrics below, Occidental Petroleum Corporation leads on 13 and Devon Energy Corporation on 9.

Valuation

Metric DVN OXY Oil & Gas E&P median
P/E 11.98 9.48 11.01
P/S 2.41 2.60 1.98
P/B 1.14 1.83 1.30
Price to free cash flow 29.55 10.94 10.68
EV/EBITDA 6.97 4.94 5.09
EV/Sales 2.94 3.00 2.63
Earnings yield 8.35% 10.55% 5.78%
Free cash flow yield 3.38% 9.14% 4.91%

Profitability

Metric DVN OXY Oil & Gas E&P median
Gross margin 79.45% 73.32% 80.41%
Operating margin 21.39% 29.32% 21.39%
Net margin 16.67% 27.30% 14.17%
Free cash flow margin 8.17% 23.79% 8.18%
Return on equity 11.50% 21.08% 10.05%
Return on assets 6.41% 7.93% 5.81%
Return on invested capital 5.05% 6.85% 6.32%

Growth

Metric DVN OXY Oil & Gas E&P median
Revenue growth (TTM) 14.64% 18.51% 9.94%
EPS growth (last fiscal year) (8.55%) (34.02%) (10.50%)
Revenue growth, 5-year CAGR 28.91% 3.93% 18.67%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DVN OXY Oil & Gas E&P median
Debt to equity 0.27 0.32 0.28
Current ratio 0.72 1.41 0.96
Net debt to EBITDA 0.99 1.71 0.89

Dividend

Metric DVN OXY Oil & Gas E&P median
Dividend yield 2.21% 1.67% 3.29%
Payout ratio 0.27 0.16 0.35

Size

Metric DVN OXY Oil & Gas E&P median
Market cap 54.16b 60.65b 1.04b

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