Analyzing ENI (NYSE:E) & Northern Oil and Gas (NYSE:NOG)

ENI (NYSE:E) and Northern Oil and Gas (NYSE:NOG) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Valuation & Earnings

This table compares ENI and Northern Oil and Gas’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ENI	$89.47 billion	0.58	$5.16 billion	$2.32	13.14
Northern Oil and Gas	$2.17 billion	1.71	$922.97 million	$6.17	5.96

ENI has higher revenue and earnings than Northern Oil and Gas. Northern Oil and Gas is trading at a lower price-to-earnings ratio than ENI, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

ENI has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Northern Oil and Gas has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500.

Dividends

ENI pays an annual dividend of $1.48 per share and has a dividend yield of 4.9%. Northern Oil and Gas pays an annual dividend of $1.60 per share and has a dividend yield of 4.4%. ENI pays out 63.8% of its earnings in the form of a dividend. Northern Oil and Gas pays out 25.9% 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.

Institutional and Insider Ownership

1.2% of ENI shares are owned by institutional investors. Comparatively, 98.8% of Northern Oil and Gas shares are owned by institutional investors. 0.0% of ENI shares are owned by insiders. Comparatively, 2.8% of Northern Oil and Gas shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for ENI and Northern Oil and Gas, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ENI	0	2	1	0	2.33
Northern Oil and Gas	0	2	8	1	2.91

Northern Oil and Gas has a consensus price target of $48.90, suggesting a potential upside of 33.03%. Given Northern Oil and Gas’ stronger consensus rating and higher probable upside, analysts plainly believe Northern Oil and Gas is more favorable than ENI.

Profitability

This table compares ENI and Northern Oil and Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ENI	3.95%	12.57%	4.88%
Northern Oil and Gas	30.01%	34.06%	13.70%

Summary

Northern Oil and Gas beats ENI on 13 of the 17 factors compared between the two stocks.

About ENI

Eni S.p.A. operates as an integrated energy company worldwide. The company engages in exploration, development, extracting, manufacturing, and marketing crude oil and natural gas, oil-based fuels, chemical products, and gas-fired power, as well as energy products from renewable sources. It operates through Exploration & Production; Global Gas & LNG Portfolio (GGP); Enilive, Refining and Chemicals; Plenitude & Power; and Corporate and Other Activities segments. The company engages in research, development, and production of oil, condensates, and natural gas. It is also involved in the supply and sale of wholesale natural gas through pipeline; and international transport, and purchase and marketing of liquefied natural gas. In addition, the company supplies bio-feedstock and crude oil; and stores, produces, distributes, and markets biofuels, oil products, biomethane, basic chemical and petrochemical products, intermediates, plastics and elastomers, and other chemicals, as well as provides smart mobility solutions and mobility services. Further, it engages in the retail marketing of gas, electricity, and related services; production and wholesale sale of electricity from thermoelectric and renewable plants; and provision of services for E-mobility. The company was founded in 1953 and is headquartered in Rome, Italy.

About Northern Oil and Gas

Northern Oil and Gas, Inc., an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the United States. It primarily holds interests in the Williston Basin, the Appalachian Basin, and the Permian Basin in the United States. The company is based in Minnetonka, Minnesota.