Critical Analysis: ZaZa Energy (OTCMKTS:ZAZA) vs. EOG Resources (NYSE:EOG)

ZaZa Energy (OTCMKTS:ZAZA) and EOG Resources (NYSE:EOG) are both energy companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for ZaZa Energy and EOG Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZaZa Energy	0	0	0	0	0.00
EOG Resources	0	18	11	1	2.43

EOG Resources has a consensus target price of $153.68, suggesting a potential upside of 10.54%. Given EOG Resources’ stronger consensus rating and higher probable upside, analysts clearly believe EOG Resources is more favorable than ZaZa Energy.

Profitability

This table compares ZaZa Energy and EOG Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZaZa Energy	N/A	N/A	N/A
EOG Resources	22.00%	18.67%	11.25%

Valuation & Earnings

This table compares ZaZa Energy and EOG Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZaZa Energy	N/A	N/A	N/A	N/A	N/A
EOG Resources	$22.58 billion	3.30	$4.98 billion	$9.11	15.26

EOG Resources has higher revenue and earnings than ZaZa Energy.

Insider and Institutional Ownership

89.9% of EOG Resources shares are owned by institutional investors. 56.9% of ZaZa Energy shares are owned by insiders. Comparatively, 0.1% of EOG Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

EOG Resources beats ZaZa Energy on 9 of the 10 factors compared between the two stocks.

About ZaZa Energy

ZaZa Energy Corporation, an independent oil and gas company, focuses on the exploration and production of unconventional and conventional oil and gas assets in the United States. The company's properties include the Eagle Ford East Trend comprising approximately 41,000 net acres in Houston, Leon, Madison, Grimes, Walker, Trinity, and Montgomery counties in East Texas; and Eagle Ford Trend covering approximately 3,700 net acres located in DeWitt and Lavaca counties in South Texas. ZaZa Energy Corporation is headquartered in Houston, Texas.

About EOG Resources

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.