Financial Analysis: Teekay (NYSE:TK) and EOG Resources (NYSE:EOG)

Teekay (NYSE:TK) and EOG Resources (NYSE:EOG) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Earnings & Valuation

This table compares Teekay 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
Teekay	$949.52 million	1.32	$98.11 million	$2.08	6.97
EOG Resources	$26.64 billion	3.03	$4.98 billion	$12.85	11.99

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

Risk and Volatility

Teekay has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, EOG Resources has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Teekay	15.78%	7.91%	7.26%
EOG Resources	25.44%	23.44%	13.58%

Analyst Ratings

This is a summary of recent recommendations and price targets for Teekay and EOG Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teekay	0	0	1	0	3.00
EOG Resources	0	18	9	1	2.39

EOG Resources has a consensus price target of $160.00, indicating a potential upside of 3.82%. Given EOG Resources’ higher possible upside, analysts clearly believe EOG Resources is more favorable than Teekay.

Insider & Institutional Ownership

46.7% of Teekay shares are held by institutional investors. Comparatively, 89.9% of EOG Resources shares are held by institutional investors. 2.4% of Teekay shares are held by insiders. Comparatively, 0.1% of EOG Resources shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

EOG Resources beats Teekay on 13 of the 15 factors compared between the two stocks.

About Teekay

Teekay Corporation engages in the international crude oil and other marine transportation services worldwide. The company owns and operates crude oil and refined product tankers. It also provides ship-to-ship support services; tanker commercial management operation services; and operational and maintenance marine services. As of March 1, 2024, the company operated a fleet of approximately 53 owned and chartered-in vessels. It serves energy and utility companies, major oil traders, large oil consumers and petroleum product producers, government agencies, and various other entities that depend upon marine transportation. Teekay Corporation was founded in 1973 and is headquartered in Hamilton, Bermuda.

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.