Analyzing EOG Resources (NYSE:EOG) & Southwestern Energy (NYSE:SWN)

Southwestern Energy (NYSE:SWN) and EOG Resources (NYSE:EOG) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Profitability

This table compares Southwestern Energy and EOG Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Southwestern Energy	-48.91%	10.55%	4.80%
EOG Resources	30.33%	25.65%	16.38%

Institutional and Insider Ownership

87.0% of Southwestern Energy shares are owned by institutional investors. Comparatively, 89.9% of EOG Resources shares are owned by institutional investors. 0.6% of Southwestern Energy shares are owned by insiders. Comparatively, 0.3% of EOG Resources shares are owned by 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.

Risk & Volatility

Southwestern Energy has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, EOG Resources has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Southwestern Energy and EOG Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southwestern Energy	1	10	2	0	2.08
EOG Resources	0	14	8	1	2.43

Southwestern Energy currently has a consensus target price of $8.35, suggesting a potential upside of 33.74%. EOG Resources has a consensus target price of $144.10, suggesting a potential upside of 12.53%. Given Southwestern Energy’s higher probable upside, research analysts plainly believe Southwestern Energy is more favorable than EOG Resources.

Valuation & Earnings

This table compares Southwestern Energy and EOG Resources’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Southwestern Energy	$5.64 billion	1.22	$1.56 billion	($1.74)	-3.59
EOG Resources	$24.01 billion	3.07	$7.59 billion	$12.66	10.12

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

Summary

EOG Resources beats Southwestern Energy on 13 of the 15 factors compared between the two stocks.

About Southwestern Energy

Southwestern Energy Company, an independent energy company, engages in the exploration, development, and production of natural gas, oil, and natural gas liquids (NGLs) in the United States. It operates through two segments, Exploration and Production, and Marketing. The company focuses on the development of unconventional natural gas and oil reservoirs located in Pennsylvania, West Virginia, Ohio, and Louisiana. It also engages in the marketing and transportation of natural gas, oil, and NGLs. It serves LNG exporters, energy companies, utilities, and industrial purchasers of natural gas. Southwestern Energy Company was incorporated in 1929 and is headquartered in Spring, Texas.

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.