Analyzing Murphy Oil (NYSE:MUR) and EOG Resources (NYSE:EOG)

EOG Resources (NYSE:EOGGet Free Report) and Murphy Oil (NYSE:MURGet 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 dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.

Institutional & Insider Ownership

89.9% of EOG Resources shares are owned by institutional investors. Comparatively, 78.3% of Murphy Oil shares are owned by institutional investors. 0.2% of EOG Resources shares are owned by insiders. Comparatively, 6.0% of Murphy Oil 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.

Profitability

This table compares EOG Resources and Murphy Oil’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EOG Resources 30.33% 24.83% 15.82%
Murphy Oil 16.40% 11.75% 6.51%

Risk and Volatility

EOG Resources has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, Murphy Oil has a beta of 2.21, indicating that its share price is 121% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for EOG Resources and Murphy Oil, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EOG Resources 0 14 7 1 2.41
Murphy Oil 0 5 6 0 2.55

EOG Resources currently has a consensus price target of $142.67, indicating a potential upside of 19.79%. Murphy Oil has a consensus price target of $51.00, indicating a potential upside of 30.97%. Given Murphy Oil’s stronger consensus rating and higher possible upside, analysts clearly believe Murphy Oil is more favorable than EOG Resources.

Dividends

EOG Resources pays an annual dividend of $3.64 per share and has a dividend yield of 3.1%. Murphy Oil pays an annual dividend of $1.20 per share and has a dividend yield of 3.1%. EOG Resources pays out 28.8% of its earnings in the form of a dividend. Murphy Oil pays out 33.4% 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.

Earnings & Valuation

This table compares EOG Resources and Murphy Oil’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EOG Resources $24.19 billion 2.83 $7.59 billion $12.66 9.41
Murphy Oil $3.46 billion 1.72 $661.56 million $3.59 10.85

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

Summary

EOG Resources beats Murphy Oil on 11 of the 17 factors compared between the two stocks.

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.

About Murphy Oil

(Get Free Report)

Murphy Oil Corporation, together with its subsidiaries, operates as an oil and gas exploration and production company in the United States, Canada, and internationally. It explores for and produces crude oil, natural gas, and natural gas liquids. The company was formerly known as Murphy Corporation and changed its name to Murphy Oil Corporation in 1964. The company was incorporated in 1950 and is headquartered in Houston, Texas.

Receive News & Ratings for EOG Resources Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for EOG Resources and related companies with MarketBeat.com's FREE daily email newsletter.