EOG Resources (NYSE:EOG) & China Shenhua Energy (OTCMKTS:CSUAY) Financial Analysis

EOG Resources (NYSE:EOG) and China Shenhua Energy (OTCMKTS:CSUAY) are both large-cap energy companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for EOG Resources and China Shenhua Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EOG Resources	0	17	9	2	2.46
China Shenhua Energy	0	1	0	0	2.00

EOG Resources presently has a consensus target price of $161.24, indicating a potential upside of 2.19%. Given EOG Resources’ stronger consensus rating and higher probable upside, equities analysts plainly believe EOG Resources is more favorable than China Shenhua Energy.

Insider & Institutional Ownership

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

Risk and Volatility

EOG Resources has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, China Shenhua Energy has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500.

Dividends

EOG Resources pays an annual dividend of $4.08 per share and has a dividend yield of 2.6%. China Shenhua Energy pays an annual dividend of $0.91 per share and has a dividend yield of 4.6%. EOG Resources pays out 31.8% of its earnings in the form of a dividend. China Shenhua Energy pays out 56.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. EOG Resources has increased its dividend for 8 consecutive years.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EOG Resources	$22.63 billion	3.66	$4.98 billion	$12.85	12.28
China Shenhua Energy	$41.03 billion	2.41	$7.54 billion	$1.62	12.28

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
EOG Resources	25.44%	23.44%	13.58%
China Shenhua Energy	16.90%	11.23%	7.83%

Summary

EOG Resources beats China Shenhua Energy on 14 of the 18 factors compared between the two stocks.

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.

About China Shenhua Energy

China Shenhua Energy Company Limited, together with its subsidiaries, engages in the production and sale of coal and power; railway, port, and shipping transportation; and coal-to-olefins businesses in the People's Republic of China and internationally. It operates through six segments: Coal, Power Generation, Railway, Port, Shipping, and Coal Chemical. The Coal segment produces coal from surface and underground mines; and sells coal to power plants and metallurgical and coal chemical producers. The Power segment generates electric power through thermal, wind, water, and gas; and sells electric power to power grid companies. The Railway segment provides railway transportation services. The Port segment offers loading, transportation, and storage services. The Shipping segment provides shipment transportation services. The Coal Chemical segment produces and sells methanol; and polyethylene and polypropylene, as well as other by-products. The company was incorporated in 2004 and is based in Beijing, the People's Republic of China. China Shenhua Energy Company Limited operates as a subsidiary of China Energy Investment Corporation Limited.