Devon Energy Corporation (DVN) vs Woodside Energy Group Ltd (WDS)

Devon Energy Corporation and Woodside Energy Group Ltd are both Oil & Gas E&P companies. Devon Energy Corporation is the larger, with a market value of $47.2B against $40.7B — 1.2× the size. Woodside Energy Group Ltd trades at the lower P/E: 3.3× against 10.2×. Woodside Energy Group Ltd has the higher net margin (34.7% vs 16.7%) and the lower return on invested capital (0.00% vs 5.05%). Both pay a dividend; Woodside Energy Group Ltd yields more (5.38% vs 2.60%). Across the 18 metrics below, Woodside Energy Group Ltd leads on 10 and Devon Energy Corporation on 8.

Valuation

Metric DVN WDS Oil & Gas E&P median
P/E 10.18 3.27 9.67
P/S 2.05 n/m 1.76
P/B 0.97 n/m 1.19
Price to free cash flow 25.10 n/m 8.37
EV/EBITDA 6.11 0.34 4.59
EV/Sales 2.58 0.24 2.27
Earnings yield 9.83% 30.62% 7.55%
Free cash flow yield 3.98% 0.00% 3.98%

Profitability

Metric DVN WDS Oil & Gas E&P median
Gross margin 79.45% 52.01% 79.54%
Operating margin 21.39% 0.00% 24.01%
Net margin 16.67% 34.74% 14.11%
Free cash flow margin 8.17% 0.00% 7.72%
Return on equity 11.50% 0.00% 8.99%
Return on assets 6.41% 0.00% 4.63%
Return on invested capital 5.05% 0.00% 6.33%

Growth

Metric DVN WDS Oil & Gas E&P median
Revenue growth (TTM) 14.64% — 13.60%
EPS growth (last fiscal year) (8.55%) (24.06%) (10.17%)
Revenue growth, 5-year CAGR 28.91% 29.25% 18.67%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DVN WDS Oil & Gas E&P median
Debt to equity 0.27 0.27 0.29
Current ratio 0.72 1.39 0.92
Net debt to EBITDA 0.99 0.65 0.93

Dividend

Metric DVN WDS Oil & Gas E&P median
Dividend yield 2.60% 5.38% 3.76%
Payout ratio 0.27 — 0.33

Size

Metric DVN WDS Oil & Gas E&P median
Market cap 47.17b 40.66b 953.29m

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