Coterra Energy (NYSE:CTRA) and EOG Resources (NYSE:EOG) Financial Contrast

EOG Resources (NYSE:EOG) and Coterra Energy (NYSE:CTRA) 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, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.

Volatility and Risk

EOG Resources has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500. Comparatively, Coterra Energy has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
EOG Resources	22.00%	18.67%	11.25%
Coterra Energy	22.46%	10.43%	6.33%

Analyst Ratings

This is a breakdown of current recommendations for EOG Resources and Coterra Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EOG Resources	0	18	11	1	2.43
Coterra Energy	0	9	16	0	2.64

EOG Resources currently has a consensus target price of $145.04, indicating a potential upside of 1.70%. Coterra Energy has a consensus target price of $36.17, indicating a potential upside of 4.61%. Given Coterra Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Coterra Energy is more favorable than EOG Resources.

Dividends

EOG Resources pays an annual dividend of $4.08 per share and has a dividend yield of 2.9%. Coterra Energy pays an annual dividend of $0.88 per share and has a dividend yield of 2.5%. EOG Resources pays out 44.8% of its earnings in the form of a dividend. Coterra Energy pays out 38.6% 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 and Coterra Energy has increased its dividend for 4 consecutive years. EOG Resources is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares EOG Resources and Coterra Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EOG Resources	$22.63 billion	3.38	$4.98 billion	$9.11	15.65
Coterra Energy	$7.65 billion	3.43	$1.72 billion	$2.28	15.17

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

Insider and Institutional Ownership

89.9% of EOG Resources shares are held by institutional investors. Comparatively, 87.9% of Coterra Energy shares are held by institutional investors. 0.1% of EOG Resources shares are held by company insiders. Comparatively, 1.7% of Coterra Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

EOG Resources beats Coterra Energy on 10 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 Coterra Energy

Coterra Energy Inc., an independent oil and gas company, engages in the development, exploration, and production of oil, natural gas, and natural gas liquids in the United States. The company’s properties include the Marcellus Shale with approximately 186,000 net acres in the dry gas window of the play located in Susquehanna County, Pennsylvania; Permian Basin properties with approximately 296,000 net acres located in west Texas and southeast New Mexico; and Anadarko Basin properties with approximately 182,000 net acres located in Oklahoma. It also operates natural gas and saltwater gathering and disposal systems in Texas. The company sells its natural gas to industrial customers, local distribution companies, oil and gas marketers, major energy companies, pipeline companies, and power generation facilities. Coterra Energy Inc. was incorporated in 1989 and is headquartered in Houston, Texas.