Enduro Royalty Trust (NDRO) vs. Devon Energy (DVN) Head to Head Review
Enduro Royalty Trust (NYSE: NDRO) and Devon Energy (NYSE:DVN) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.
Volatility & Risk
Enduro Royalty Trust has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500. Comparatively, Devon Energy has a beta of 2.1, indicating that its share price is 110% more volatile than the S&P 500.
This table compares Enduro Royalty Trust and Devon Energy’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Enduro Royalty Trust||$39.87 million||2.62||$8.48 million||$0.31||10.23|
|Devon Energy||$12.20 billion||1.53||-$3.30 billion||$2.93||12.14|
Enduro Royalty Trust has higher earnings, but lower revenue than Devon Energy. Enduro Royalty Trust is trading at a lower price-to-earnings ratio than Devon Energy, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
57.5% of Enduro Royalty Trust shares are held by institutional investors. Comparatively, 77.7% of Devon Energy shares are held by institutional investors. 0.5% of Devon Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations for Enduro Royalty Trust and Devon Energy, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Enduro Royalty Trust||0||1||0||0||2.00|
Enduro Royalty Trust presently has a consensus price target of $4.00, suggesting a potential upside of 26.18%. Devon Energy has a consensus price target of $47.65, suggesting a potential upside of 33.99%. Given Devon Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Devon Energy is more favorable than Enduro Royalty Trust.
Enduro Royalty Trust pays an annual dividend of $0.22 per share and has a dividend yield of 6.9%. Devon Energy pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. Enduro Royalty Trust pays out 71.0% of its earnings in the form of a dividend. Devon Energy pays out 8.2% 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.
This table compares Enduro Royalty Trust and Devon Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Enduro Royalty Trust||28.20%||9.68%||9.68%|
Devon Energy beats Enduro Royalty Trust on 10 of the 16 factors compared between the two stocks.
About Enduro Royalty Trust
Enduro Royalty Trust (the Trust) is a statutory trust formed by Enduro Resource Partners LLC (Enduro), as trustor, The Bank of New York Mellon Trust Company, N.A. (the Trustee), as trustee, and Wilmington Trust Company (the Delaware Trustee), as Delaware Trustee. The Trust was created to acquire and hold for the benefit of the Trust unitholders a net profits interest representing the right to receive approximately 80% of the net profits from the sale of oil and natural gas production from certain properties in the states of Texas, Louisiana and New Mexico held by Enduro as of the date of the conveyance of the net profits interest to the Trust (the Net Profits Interest). The properties in which the Trust holds the Net Profits Interest are referred to as the Underlying Properties. Enduro is engaged in the production and development of oil and natural gas. The Underlying Properties comprises producing and non-producing interests in oil and natural gas units, wells and lands.
About Devon Energy
Devon Energy Corporation is an independent energy company. The Company also controls EnLink Midstream Partners, L.P. (EnLink). The Company’s segments include U.S., Canada and EnLink. The Company is engaged primarily in the exploration, development and production of oil, natural gas and natural gas liquids (NGLs). The Company’s operations are concentrated in various North American onshore areas in the United States and Canada. The Company’s U.S. and Canada segments are primarily engaged in oil and gas exploration and production activities. EnLink is a master limited partnership (MLP) with a midstream business and operations located across the United States. EnLink focuses on providing gathering, transmission, processing, storage, fractionation and marketing to upstream oil and natural gas producers. The Company’s properties include Barnett Shale, Delaware Basin, Eagle Ford, Heavy Oil, Rockies Oil and STACK.
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