ConocoPhillips (NYSE: COP) and Carrizo Oil & Gas (NASDAQ:CRZO) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Institutional & Insider Ownership

68.9% of ConocoPhillips shares are held by institutional investors. 0.8% of ConocoPhillips shares are held by company insiders. Comparatively, 6.0% of Carrizo Oil & Gas shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

ConocoPhillips has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Carrizo Oil & Gas has a beta of 2.11, meaning that its share price is 111% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for ConocoPhillips and Carrizo Oil & Gas, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ConocoPhillips 1 6 13 1 2.67
Carrizo Oil & Gas 1 8 11 1 2.57

ConocoPhillips presently has a consensus target price of $54.60, suggesting a potential upside of 9.86%. Carrizo Oil & Gas has a consensus target price of $35.56, suggesting a potential upside of 106.72%. Given Carrizo Oil & Gas’ higher possible upside, analysts clearly believe Carrizo Oil & Gas is more favorable than ConocoPhillips.

Earnings and Valuation

This table compares ConocoPhillips and Carrizo Oil & Gas’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ConocoPhillips $28.02 billion 2.16 $7.50 billion ($3.03) -16.40
Carrizo Oil & Gas $548.50 million 2.55 $400.25 million ($0.27) -63.70

ConocoPhillips has higher revenue and earnings than Carrizo Oil & Gas. Carrizo Oil & Gas is trading at a lower price-to-earnings ratio than ConocoPhillips, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ConocoPhillips and Carrizo Oil & Gas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ConocoPhillips -12.29% -2.86% -1.13%
Carrizo Oil & Gas -0.98% 1,494.45% 4.41%

Dividends

ConocoPhillips pays an annual dividend of $1.06 per share and has a dividend yield of 2.1%. Carrizo Oil & Gas does not pay a dividend. ConocoPhillips pays out -35.0% of its earnings in the form of a dividend.

Summary

Carrizo Oil & Gas beats ConocoPhillips on 8 of the 15 factors compared between the two stocks.

About ConocoPhillips

ConocoPhillips is an independent exploration and production company. The Company explores for, produces, transports and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG) and natural gas liquids. The Company operates through five segments: Alaska, Lower 48, Canada, Europe and North Africa, Asia Pacific and Middle East, and Other International. The Alaska segment explores for, produces, transports and markets crude oil, natural gas liquids, natural gas and LNG. The Lower 48 segment consists of operations located in the United States Lower 48 states and the Gulf of Mexico. Its Canadian operations consists of oil sands developments in the Athabasca Region of northeastern Alberta. The Europe and North Africa segment consists of operations and exploration activities in Norway, the United Kingdom and Libya. The Asia Pacific and Middle East segment has exploration and production operations in China, Indonesia, Malaysia and Australia.

About Carrizo Oil & Gas

Carrizo Oil & Gas, Inc. is an energy company. The Company is engaged in the exploration, development and production of oil and gas from resource plays located in the United States. Its operations are focused in proven, producing oil and gas plays in the Eagle Ford Shale in South Texas, the Delaware Basin in West Texas, the Utica Shale in Ohio, the Niobrara Formation in Colorado, and the Marcellus Shale in Pennsylvania. As of December 31, 2016, the Company’s proved reserves of 200 million barrels of oil equivalent (MMBoe) were 64% crude oil, 12% natural gas liquids (NGLs) and 24% natural gas. As of December 31, 2016, it operated approximately 94% of the wells in Eagle Ford in which it held an interest. As of December 31, 2016, it held an average interest of approximately 85% in these operated wells. As of December 31, 2016, it owned leases covering approximately 309,200 gross (179,179 net) acres in the Eagle Ford, Niobrara, Utica and the Delaware Basin areas.

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