Head-To-Head Contrast: Devon Energy (NYSE:DVN) vs. Zion Oil & Gas (OTCMKTS:ZNOG)

Devon Energy (NYSE:DVN) and Zion Oil & Gas (OTCMKTS:ZNOG) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.

Volatility and Risk

Devon Energy has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, Zion Oil & Gas has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Devon Energy and Zion Oil & Gas, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Devon Energy	0	6	23	2	2.87
Zion Oil & Gas	0	0	0	0	0.00

Devon Energy presently has a consensus price target of $57.89, suggesting a potential upside of 30.78%. Given Devon Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Devon Energy is more favorable than Zion Oil & Gas.

Profitability

This table compares Devon Energy and Zion Oil & Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Devon Energy	13.71%	15.22%	7.39%
Zion Oil & Gas	N/A	-18.78%	-17.25%

Earnings & Valuation

This table compares Devon Energy and Zion Oil & Gas”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Devon Energy	$17.19 billion	1.60	$2.64 billion	$3.59	12.33
Zion Oil & Gas	N/A	N/A	-$7.63 million	($1.77)	-0.37

Devon Energy has higher revenue and earnings than Zion Oil & Gas. Zion Oil & Gas 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

69.7% of Devon Energy shares are owned by institutional investors. Comparatively, 7.9% of Zion Oil & Gas shares are owned by institutional investors. 4.6% of Devon Energy shares are owned by company insiders. Comparatively, 2.2% of Zion Oil & Gas shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Devon Energy beats Zion Oil & Gas on 13 of the 14 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 Zion Oil & Gas

Zion Oil & Gas, Inc., together with its subsidiaries, operates as an oil and gas exploration company in Israel. It holds a petroleum exploration license onshore Israel, the New Megiddo License 434 comprising an area of approximately 75,000 acres. The company was incorporated in 2000 and is headquartered in Dallas, Texas.