Analyzing Devon Energy (NYSE:DVN) & Hong Kong and China Gas (OTCMKTS:HOKCY)

Devon Energy (NYSE:DVN) and Hong Kong and China Gas (OTCMKTS:HOKCY) are both large-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and price targets for Devon Energy and Hong Kong and China Gas, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Devon Energy	0	9	14	0	2.61
Hong Kong and China Gas	0	0	0	0	0.00

Devon Energy presently has a consensus target price of $48.87, indicating a potential upside of 44.56%. Given Devon Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Devon Energy is more favorable than Hong Kong and China Gas.

Dividends

Devon Energy pays an annual dividend of $0.96 per share and has a dividend yield of 2.8%. Hong Kong and China Gas pays an annual dividend of $0.02 per share and has a dividend yield of 2.9%. Devon Energy pays out 21.1% of its earnings in the form of a dividend.

Risk and Volatility

Devon Energy has a beta of 1.91, indicating that its stock price is 91% more volatile than the S&P 500. Comparatively, Hong Kong and China Gas has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500.

Profitability

This table compares Devon Energy and Hong Kong and China Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Devon Energy	18.14%	22.52%	11.02%
Hong Kong and China Gas	N/A	N/A	N/A

Insider and Institutional Ownership

69.7% of Devon Energy shares are held by institutional investors. 0.7% of Devon Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Devon Energy and Hong Kong and China Gas”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Devon Energy	$15.94 billion	1.38	$3.75 billion	$4.56	7.41
Hong Kong and China Gas	$7.28 billion	1.79	$788.99 million	N/A	N/A

Devon Energy has higher revenue and earnings than Hong Kong and China Gas.

Summary

Devon Energy beats Hong Kong and China Gas on 11 of the 14 factors compared between the two stocks.

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.

About Hong Kong and China Gas

The Hong Kong and China Gas Company Limited, together with its subsidiaries, produces, distributes, and markets gas, water supply and energy services in Hong Kong and Mainland China. It is involved in the provision of smart energy, piped city-gas, upstream and midstream projects, water supply and wastewater treatment, urban waste resource utilization, and natural gas filling stations, as well as new energy exploration and utilization activities. The company develops new energy projects that are low in emissions and pollution, which includes clean coal chemical business, liquefaction of methane, etc., as well as supplies town gas. It also provides network connectivity, data center, and ICT services, as well as engineering, procurement, and construction services. In addition, the company offers consultancy and engineering contractor services, including utilities installation, infrastructure construction, and civil and building services engineering for public and private projects; and designs and manufactures gas meters and metering systems. Further, it is involved in water supply, and domestic sewage and industrial wastewater treatment activities. Additionally, the company manufactures polyethylene piping and fittings; as well as engages in the software development, solution implementation, and systems integration activities. The Hong Kong and China Gas Company Limited was founded in 1862 and is headquartered in North Point, Hong Kong.