EOG Resources (NYSE:EOG) vs. Southwestern Energy (NYSE:SWN) Critical Analysis

Southwestern Energy (NYSE:SWNGet Free Report) and EOG Resources (NYSE:EOGGet Free Report) are both oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.

Risk & Volatility

Southwestern Energy has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, EOG Resources has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Southwestern Energy and EOG Resources, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Southwestern Energy 1 10 2 0 2.08
EOG Resources 0 14 8 1 2.43

Southwestern Energy currently has a consensus target price of $8.27, suggesting a potential upside of 31.56%. EOG Resources has a consensus target price of $144.15, suggesting a potential upside of 15.09%. Given Southwestern Energy’s higher probable upside, equities analysts clearly believe Southwestern Energy is more favorable than EOG Resources.

Profitability

This table compares Southwestern Energy and EOG Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Southwestern Energy -48.91% 10.55% 4.80%
EOG Resources 30.33% 25.65% 16.38%

Earnings and Valuation

This table compares Southwestern Energy and EOG Resources’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Southwestern Energy $6.52 billion 1.06 $1.56 billion ($1.74) -3.61
EOG Resources $24.01 billion 3.00 $7.59 billion $12.66 9.89

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

Insider and Institutional Ownership

87.0% of Southwestern Energy shares are held by institutional investors. Comparatively, 89.9% of EOG Resources shares are held by institutional investors. 0.6% of Southwestern Energy shares are held by company insiders. Comparatively, 0.3% of EOG Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

EOG Resources beats Southwestern Energy on 13 of the 15 factors compared between the two stocks.

About Southwestern Energy

(Get Free Report)

Southwestern Energy Company, an independent energy company, engages in the exploration, development, and production of natural gas, oil, and natural gas liquids (NGLs) in the United States. It operates through two segments, Exploration and Production, and Marketing. The company focuses on the development of unconventional natural gas and oil reservoirs located in Pennsylvania, West Virginia, Ohio, and Louisiana. It also engages in the marketing and transportation of natural gas, oil, and NGLs. It serves LNG exporters, energy companies, utilities, and industrial purchasers of natural gas. Southwestern Energy Company was incorporated in 1929 and is headquartered in Spring, Texas.

About EOG Resources

(Get Free Report)

EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, natural gas liquids, and natural gas primarily in producing basins in the United States, the Republic of Trinidad and Tobago and internationally. The company was formerly known as Enron Oil & Gas Company. EOG Resources, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.

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