VOC Energy Trust (NYSE: VOC) and EOG Resources (NYSE:EOG) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitabiliy, earnings, dividends and valuation.
This is a breakdown of recent ratings and target prices for VOC Energy Trust and EOG Resources, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|VOC Energy Trust||0||0||0||0||N/A|
EOG Resources has a consensus price target of $109.14, indicating a potential upside of 21.16%. Given EOG Resources’ higher possible upside, analysts plainly believe EOG Resources is more favorable than VOC Energy Trust.
Risk and Volatility
VOC Energy Trust has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, EOG Resources has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.
This table compares VOC Energy Trust and EOG Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|VOC Energy Trust||84.17%||5.36%||5.36%|
Earnings and Valuation
This table compares VOC Energy Trust and EOG Resources’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|VOC Energy Trust||$6.27 million||12.34||$4.93 million||$0.29||15.69|
|EOG Resources||$8.77 billion||5.93||$3.46 billion||($1.08)||-83.41|
EOG Resources has higher revenue and earnings than VOC Energy Trust. EOG Resources is trading at a lower price-to-earnings ratio than VOC Energy Trust, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
5.6% of VOC Energy Trust shares are owned by institutional investors. Comparatively, 86.1% of EOG Resources shares are owned by institutional investors. 0.5% of EOG Resources shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
VOC Energy Trust pays an annual dividend of $0.32 per share and has a dividend yield of 7.0%. EOG Resources pays an annual dividend of $0.67 per share and has a dividend yield of 0.7%. VOC Energy Trust pays out 110.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EOG Resources pays out -62.0% of its earnings in the form of a dividend.
About VOC Energy Trust
VOC Energy Trust is a statutory trust formed by VOC Brazos Energy Partners, L.P. (VOC Brazos). The business and affairs of the Company are managed by The Bank of New York Mellon Trust Company, N.A., as trustee. The Company was created to acquire and hold the net profits interest for the benefit of its unitholders. VOC Brazos’ properties include interests in approximately 820 gross producing wells covering over 91,490 gross acres. VOC Brazos’ properties are developed properties located in oil and natural gas producing regions of Kansas and Texas. VOC Brazos’ fields in the Central Kansas Uplift include Fairport Field, Chase-Silica Field and Marcotte Field. VOC Brazos’ fields in Western Kansas include the Bindley, Moore-Johnson and Wesley fields. VOC Brazos’ fields in South Central Kansas include the Gerberding, Spivey Grabs and Alford fields. VOC Brazos’ proved reserved in Texas are located in the Central Texas and East Texas areas.
About EOG Resources
EOG Resources, Inc. explores for, develops, produces and markets crude oil and natural gas in major producing basins in the United States, The Republic of Trinidad and Tobago, the United Kingdom, The People’s Republic of China, Canada and, from time to time, select other international areas. Its operations are all crude oil and natural gas exploration and production related. As of December 31, 2016, its total estimated net proved reserves were over 2,147 million barrels of oil equivalent (MMBoe), of which over 1178 million barrels (MMBbl) were crude oil and condensate reserves, over 416 MMBbl were natural gas liquids reserves and over 3318 billion cubic feet, or 553 MMBoe, were natural gas reserves. Its operations are focused in the productive basins in the United States with a focus on crude oil and, to a lesser extent, liquids-rich natural gas plays. It has operations offshore Trinidad, in the United Kingdom East Irish Sea, in the China Sichuan Basin and in Canada.
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