Occidental Petroleum (NYSE:OXY) versus Baytex Energy (NYSE:BTE) Financial Review

Baytex Energy (NYSE:BTE) and Occidental Petroleum (NYSE:OXY) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.

Volatility and Risk

Baytex Energy has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500. Comparatively, Occidental Petroleum has a beta of 0.16, indicating that its share price is 84% less volatile than the S&P 500.

Profitability

This table compares Baytex Energy and Occidental Petroleum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Baytex Energy	-25.82%	-3.87%	-2.63%
Occidental Petroleum	32.17%	18.55%	7.38%

Insider and Institutional Ownership

46.2% of Baytex Energy shares are owned by institutional investors. Comparatively, 88.7% of Occidental Petroleum shares are owned by institutional investors. 0.8% of Baytex Energy shares are owned by insiders. Comparatively, 0.5% of Occidental Petroleum shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Baytex Energy pays an annual dividend of $0.06 per share and has a dividend yield of 1.4%. Occidental Petroleum pays an annual dividend of $1.12 per share and has a dividend yield of 2.0%. Baytex Energy pays out -11.1% of its earnings in the form of a dividend. Occidental Petroleum pays out 17.3% 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. Occidental Petroleum has raised its dividend for 5 consecutive years. Occidental Petroleum is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Baytex Energy and Occidental Petroleum”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Baytex Energy	$2.08 billion	1.38	-$432.12 million	($0.54)	-7.88
Occidental Petroleum	$22.07 billion	2.59	$2.33 billion	$6.46	8.87

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Baytex Energy and Occidental Petroleum, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Baytex Energy	0	4	4	4	3.00
Occidental Petroleum	0	15	12	0	2.44

Occidental Petroleum has a consensus target price of $67.62, indicating a potential upside of 18.06%. Given Occidental Petroleum’s higher probable upside, analysts plainly believe Occidental Petroleum is more favorable than Baytex Energy.

Summary

Occidental Petroleum beats Baytex Energy on 13 of the 18 factors compared between the two stocks.

About Baytex Energy

Baytex Energy Corp. is a Canadian oil and gas company headquartered in Calgary, Alberta. It explores for, develops and produces crude oil and natural gas, with a focus on oil-weighted assets. The company’s operations are concentrated in Western Canada, including Alberta and Saskatchewan, and in the Eagle Ford shale region of Texas. Its production includes heavy and light crude oil, natural gas and natural gas liquids. Baytex expanded its U.S. presence through its 2023 acquisition of Ranger Oil Corporation, adding Eagle Ford assets to its portfolio.

About Occidental Petroleum

Occidental Petroleum Corporation is an energy and chemicals company headquartered in Houston, Texas. Its oil and gas business explores for and produces crude oil, natural gas liquids and natural gas, with operations in the United States and international markets, including the Middle East and North Africa. Through its OxyChem business, Occidental manufactures and markets basic chemicals and vinyl products used in applications such as water treatment, construction and consumer goods. The company also develops carbon management and lower-carbon technology projects, including carbon capture and storage.