Battalion Oil (NYSE:BATL) vs. Devon Energy (NYSE:DVN) Critical Analysis

Battalion Oil (NYSE:BATL) and Devon Energy (NYSE:DVN) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.

Volatility & Risk

Battalion Oil has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Devon Energy has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Earnings & Valuation

This table compares Battalion Oil and Devon Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Battalion Oil	$191.50 million	0.11	-$3.05 million	($2.42)	-0.55
Devon Energy	$16.80 billion	1.16	$3.75 billion	$4.39	6.90

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

Profitability

This table compares Battalion Oil and Devon Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Battalion Oil	12.02%	-137.74%	-11.27%
Devon Energy	18.14%	22.52%	11.02%

Insider and Institutional Ownership

86.0% of Battalion Oil shares are held by institutional investors. Comparatively, 69.7% of Devon Energy shares are held by institutional investors. 62.0% of Battalion Oil shares are held by insiders. Comparatively, 0.7% of Devon Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Battalion Oil and Devon Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Battalion Oil	0	0	0	0	0.00
Devon Energy	0	9	14	0	2.61

Devon Energy has a consensus price target of $43.71, indicating a potential upside of 44.35%. Given Devon Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Devon Energy is more favorable than Battalion Oil.

Summary

Devon Energy beats Battalion Oil on 12 of the 14 factors compared between the two stocks.

About Battalion Oil

Battalion Oil Corporation, an independent energy company, engages in the acquisition, production, exploration, and development of onshore oil and natural gas assets in the United States. It holds interests in the Delaware Basin located in the counties of Pecos, Ward, Reeves, and Winkler, Texas. It serves independent marketers, and oil and natural gas and gas pipeline companies. The company was formerly known as Halcón Resources Corporation and changed its name to Battalion Oil Corporation in January 2020. Battalion Oil Corporation was founded in 1987 and is headquartered in Houston, Texas.

About Devon Energy

Devon Energy Corporation, an independent energy company, engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. It operates in Delaware, Eagle Ford, Anadarko, Williston, and Powder River Basins. The company was founded in 1971 and is headquartered in Oklahoma City, Oklahoma.