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 $54.2B against $44.1B — 1.2× the size. Woodside Energy Group Ltd trades at the lower P/E: 3.6× against 12.0×. 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 (4.90% vs 2.21%). 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 11.98 3.58 11.01
P/S 2.41 n/m 1.98
P/B 1.14 n/m 1.30
Price to free cash flow 29.55 n/m 10.68
EV/EBITDA 6.97 0.34 5.09
EV/Sales 2.94 0.24 2.63
Earnings yield 8.35% 27.91% 5.78%
Free cash flow yield 3.38% 0.00% 4.91%

Profitability

Metric DVN WDS Oil & Gas E&P median
Gross margin 79.45% 52.01% 80.41%
Operating margin 21.39% 0.00% 21.39%
Net margin 16.67% 34.74% 14.17%
Free cash flow margin 8.17% 0.00% 8.18%
Return on equity 11.50% 0.00% 10.05%
Return on assets 6.41% 0.00% 5.81%
Return on invested capital 5.05% 0.00% 6.32%

Growth

Metric DVN WDS Oil & Gas E&P median
Revenue growth (TTM) 14.64% — 9.94%
EPS growth (last fiscal year) (8.55%) (24.06%) (10.50%)
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 0.28
Current ratio 0.72 1.39 0.96
Net debt to EBITDA 0.99 0.65 0.89

Dividend

Metric DVN WDS Oil & Gas E&P median
Dividend yield 2.21% 4.90% 3.29%
Payout ratio 0.27 — 0.35

Size

Metric DVN WDS Oil & Gas E&P median
Market cap 54.16b 44.13b 1.04b

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