Anadarko Petroleum (NYSE:APC) vs. Energen (EGN) Financial Contrast

Energen (NYSE: EGN) and Anadarko Petroleum (NYSE:APC) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations for Energen and Anadarko Petroleum, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Energen 1 7 14 0 2.59
Anadarko Petroleum 1 4 18 0 2.74

Energen presently has a consensus price target of $66.32, suggesting a potential upside of 31.45%. Anadarko Petroleum has a consensus price target of $67.74, suggesting a potential upside of 18.46%. Given Energen’s higher probable upside, equities research analysts clearly believe Energen is more favorable than Anadarko Petroleum.

Risk and Volatility

Energen has a beta of 1.73, suggesting that its share price is 73% more volatile than the S&P 500. Comparatively, Anadarko Petroleum has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.

Valuation & Earnings

This table compares Energen and Anadarko Petroleum’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Energen $532.89 million 9.20 -$167.51 million ($0.11) -458.64
Anadarko Petroleum $11.91 billion 2.63 -$456.00 million ($0.79) -72.38

Energen has higher earnings, but lower revenue than Anadarko Petroleum. Energen is trading at a lower price-to-earnings ratio than Anadarko Petroleum, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Energen and Anadarko Petroleum’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Energen -1.17% -0.45% -0.30%
Anadarko Petroleum -3.83% -7.48% -2.47%

Institutional & Insider Ownership

94.5% of Energen shares are owned by institutional investors. Comparatively, 87.8% of Anadarko Petroleum shares are owned by institutional investors. 1.0% of Energen shares are owned by company insiders. Comparatively, 0.5% of Anadarko Petroleum shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Anadarko Petroleum pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Energen does not pay a dividend. Anadarko Petroleum pays out -25.3% of its earnings in the form of a dividend.

Summary

Energen beats Anadarko Petroleum on 10 of the 15 factors compared between the two stocks.

Energen Company Profile

Energen Corporation is an oil and natural gas exploration and production company. The Company is engaged in the exploration, development and production of oil and natural gas properties and natural gas. Its operations are conducted through subsidiary, Energen Resources Corporation and occur within the Midland Basin, the Delaware Basin and the Central Basin Platform areas of the Permian Basin in west Texas and New Mexico. The Company is focused on increasing its oil, natural gas liquids and natural gas production and proved reserves through active development and/or exploratory programs in the Permian Basin. As of December 31, 2016, oil, natural gas liquids and natural gas represented approximately 60%, 20% and 20% of its reserves. As of December 31, 2016, its development activities added approximately 327 million barrels of oil equivalent (MMBOE) of reserves from the drilling of 623 gross development, exploratory and service wells and 73 well recompletions and pay-adds.

Anadarko Petroleum Company Profile

Anadarko Petroleum Corporation (Anadarko) is an independent exploration and production company. The Company is engaged in developing, acquiring, and exploring for oil and natural-gas resources. The Company’s segments include Oil and Gas Exploration and Production; Midstream, and Marketing. The Company’s geographical segments include the United States and International. The Oil and Gas Exploration and Production segment explores for and produces oil, condensate, natural gas and natural gas liquids (NGLs), and focuses on the development and operation of the Company’s liquefied natural gas (LNG) project in Mozambique. The Midstream segment engages in gathering, processing, treating and transporting Anadarko and third-party oil, natural-gas and NGLs production. The Marketing segment sells Anadarko’s oil, natural-gas and NGLs production, as well as third-party purchased volumes. As of December 31, 2016, the Company had approximately 1.7 billion barrels of oil equivalent (BOE).

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