Analyzing Devon Energy (NYSE:DVN) and Battalion Oil (NYSE:BATL)

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

Insider and Institutional Ownership

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Devon Energy	$16.80 billion	1.22	$3.75 billion	$4.39	7.29
Battalion Oil	$191.50 million	0.12	-$3.05 million	($2.42)	-0.55

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.

Analyst Ratings

This is a summary of recent ratings for Devon Energy and Battalion Oil, as reported by MarketBeat.com.

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

Devon Energy presently has a consensus price target of $43.71, indicating a potential upside of 36.52%. Given Devon Energy’s stronger consensus rating and higher possible upside, equities analysts clearly believe Devon Energy is more favorable than Battalion Oil.

Profitability

This table compares Devon Energy and Battalion Oil’s 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%
Battalion Oil	12.02%	-137.74%	-11.27%

Volatility and Risk

Devon Energy has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, Battalion Oil has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.

Summary

Devon Energy beats Battalion Oil on 12 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 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.