Head to Head Survey: Gibson Energy (OTCMKTS:GBNXF) & Devon Energy (NYSE:DVN)

Devon Energy (NYSE:DVN) and Gibson Energy (OTCMKTS:GBNXF) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.

Dividends

Devon Energy pays an annual dividend of $1.28 per share and has a dividend yield of 2.6%. Gibson Energy pays an annual dividend of $1.30 per share and has a dividend yield of 5.7%. Devon Energy pays out 30.4% of its earnings in the form of a dividend. Gibson Energy pays out 183.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Devon Energy has increased its dividend for 1 consecutive years.

Analyst Ratings

This is a summary of recent ratings and target prices for Devon Energy and Gibson Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Devon Energy	0	5	22	2	2.90
Gibson Energy	0	4	4	1	2.67

Devon Energy currently has a consensus price target of $59.23, indicating a potential upside of 20.71%. Given Devon Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Devon Energy is more favorable than Gibson Energy.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Devon Energy	$17.19 billion	3.14	$2.64 billion	$4.21	11.66
Gibson Energy	$7.65 billion	0.52	$141.45 million	$0.71	32.35

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

Profitability

This table compares Devon Energy and Gibson Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Devon Energy	16.67%	14.93%	7.91%
Gibson Energy	1.32%	18.87%	3.50%

Volatility & Risk

Devon Energy has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, Gibson Energy has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500.

Insider & Institutional Ownership

69.7% of Devon Energy shares are owned by institutional investors. Comparatively, 0.2% of Gibson Energy shares are owned by institutional investors. 4.6% of Devon Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Devon Energy beats Gibson Energy on 14 of the 18 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 Gibson Energy

Gibson Energy Inc., together with its subsidiaries, engages in the gathering, storage, optimization, processing, and marketing of liquids and refined products in Canada and the United States. It operates through Infrastructure and Marketing segments. The Infrastructure segment operates a network of liquid infrastructure assets that include oil terminals, rail loading and unloading facilities, gathering pipelines, a crude oil processing facility, and other terminals. The Marketing segment purchases, sells, stores, and optimizes hydrocarbon products, including crude oil, natural gas liquids, road asphalt, roofing flux, frac oils, light and heavy straight run distillates, vacuum gas oil, and an oil-based mud product. It serves producers, refiners, marketers, and integrated companies, as well as exploration and production companies. The company was formerly known as Gibson Energy Holdings ULC and changed its name to Gibson Energy Inc. in April 2011. Gibson Energy Inc. was founded in 1953 and is headquartered in Calgary, Canada.