Head-To-Head Contrast: Gibson Energy (OTCMKTS:GBNXF) versus Devon Energy (NYSE:DVN)

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

Valuation & Earnings

This table compares Devon Energy and Gibson Energy”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	3.08	$2.64 billion	$4.21	11.42
Gibson Energy	$7.65 billion	0.51	$141.45 million	$0.71	31.82

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Devon Energy and Gibson Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Devon Energy	0	5	22	2	2.90
Gibson Energy	0	4	4	1	2.67

Devon Energy presently has a consensus target price of $59.23, suggesting a potential upside of 23.20%. Given Devon Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Devon Energy is more favorable than Gibson Energy.

Profitability

This table compares Devon Energy and Gibson Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Devon Energy	16.67%	14.93%	7.91%
Gibson Energy	1.32%	18.20%	3.41%

Dividends

Devon Energy pays an annual dividend of $1.28 per share and has a dividend yield of 2.7%. Gibson Energy pays an annual dividend of $1.30 per share and has a dividend yield of 5.8%. Devon Energy pays out 30.4% of its earnings in the form of a dividend. Gibson Energy pays out 183.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Devon Energy has increased its dividend for 1 consecutive years.

Risk and Volatility

Devon Energy has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500. Comparatively, Gibson Energy has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.

Institutional & Insider Ownership

69.7% of Devon Energy shares are held by institutional investors. Comparatively, 0.2% of Gibson Energy shares are held by institutional investors. 4.6% of Devon Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Devon Energy beats Gibson Energy on 14 of the 18 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 Gibson Energy

Gibson Energy Inc., together with its subsidiaries, engages in the gathering, storage, optimization, processing, and marketing of liquids and refined products in Canada and the United States. It operates through Infrastructure and Marketing segments. The Infrastructure segment operates a network of liquid infrastructure assets that include oil terminals, rail loading and unloading facilities, gathering pipelines, a crude oil processing facility, and other terminals. The Marketing segment purchases, sells, stores, and optimizes hydrocarbon products, including crude oil, natural gas liquids, road asphalt, roofing flux, frac oils, light and heavy straight run distillates, vacuum gas oil, and an oil-based mud product. It serves producers, refiners, marketers, and integrated companies, as well as exploration and production companies. The company was formerly known as Gibson Energy Holdings ULC and changed its name to Gibson Energy Inc. in April 2011. Gibson Energy Inc. was founded in 1953 and is headquartered in Calgary, Canada.