Golar LNG (NASDAQ:GLNG) vs. EOG Resources (NYSE:EOG) Head to Head Contrast

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

Profitability

This table compares EOG Resources and Golar LNG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EOG Resources	25.44%	23.44%	13.58%
Golar LNG	31.27%	8.92%	3.80%

Analyst Recommendations

This is a summary of recent ratings for EOG Resources and Golar LNG, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EOG Resources	0	17	13	1	2.48
Golar LNG	0	3	4	1	2.75

EOG Resources presently has a consensus target price of $156.21, suggesting a potential upside of 9.58%. Golar LNG has a consensus target price of $59.30, suggesting a potential upside of 12.97%. Given Golar LNG’s stronger consensus rating and higher possible upside, analysts plainly believe Golar LNG is more favorable than EOG Resources.

Dividends

EOG Resources pays an annual dividend of $4.08 per share and has a dividend yield of 2.9%. Golar LNG pays an annual dividend of $1.00 per share and has a dividend yield of 1.9%. EOG Resources pays out 31.8% of its earnings in the form of a dividend. Golar LNG pays out 72.5% 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. EOG Resources has raised its dividend for 8 consecutive years and Golar LNG has raised its dividend for 2 consecutive years. EOG Resources is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

89.9% of EOG Resources shares are owned by institutional investors. Comparatively, 92.2% of Golar LNG shares are owned by institutional investors. 0.1% of EOG Resources shares are owned by company insiders. Comparatively, 0.0% of Golar LNG shares are owned 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.

Volatility and Risk

EOG Resources has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500. Comparatively, Golar LNG has a beta of 0.05, meaning that its share price is 95% less volatile than the S&P 500.

Valuation & Earnings

This table compares EOG Resources and Golar LNG”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EOG Resources	$22.63 billion	3.30	$4.98 billion	$12.85	11.09
Golar LNG	$393.52 million	13.51	$65.68 million	$1.38	38.04

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

Summary

EOG Resources beats Golar LNG on 11 of the 17 factors compared between the two stocks.

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.

About Golar LNG

Golar LNG Limited designs, converts, owns, and operates marine infrastructure for the liquefaction of natural gas. The company operates through three segments: FLNG, Corporate and Other, and Shipping. It engages in the regasification, storage, and offloading of liquefied natural gas (LNG); operation of floating liquefaction natural gas (FLNG) vessels or projects; transportation of LNG carriers; and vessel management activities. Golar LNG Limited was founded in 1946 and is headquartered in Hamilton, Bermuda.