Head-To-Head Contrast: Devon Energy (NYSE:DVN) vs. Zion Oil & Gas (OTCMKTS:ZNOG)
by Amy Steele · The Cerbat GemDevon Energy (NYSE:DVN – Get Free Report) and Zion Oil & Gas (OTCMKTS:ZNOG – Get Free Report) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.
Volatility and Risk
Devon Energy has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, Zion Oil & Gas has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Devon Energy and Zion Oil & Gas, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Devon Energy | 0 | 6 | 23 | 2 | 2.87 |
| Zion Oil & Gas | 0 | 0 | 0 | 0 | 0.00 |
Devon Energy presently has a consensus price target of $57.89, suggesting a potential upside of 30.78%. Given Devon Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Devon Energy is more favorable than Zion Oil & Gas.
Profitability
This table compares Devon Energy and Zion Oil & Gas’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Devon Energy | 13.71% | 15.22% | 7.39% |
| Zion Oil & Gas | N/A | -18.78% | -17.25% |
Earnings & Valuation
This table compares Devon Energy and Zion Oil & Gas”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 | 1.60 | $2.64 billion | $3.59 | 12.33 |
| Zion Oil & Gas | N/A | N/A | -$7.63 million | ($1.77) | -0.37 |
Devon Energy has higher revenue and earnings than Zion Oil & Gas. Zion Oil & Gas is trading at a lower price-to-earnings ratio than Devon Energy, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
69.7% of Devon Energy shares are owned by institutional investors. Comparatively, 7.9% of Zion Oil & Gas shares are owned by institutional investors. 4.6% of Devon Energy shares are owned by company insiders. Comparatively, 2.2% of Zion Oil & Gas shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Devon Energy beats Zion Oil & Gas on 13 of the 14 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 Zion Oil & Gas
Zion Oil & Gas, Inc., together with its subsidiaries, operates as an oil and gas exploration company in Israel. It holds a petroleum exploration license onshore Israel, the New Megiddo License 434 comprising an area of approximately 75,000 acres. The company was incorporated in 2000 and is headquartered in Dallas, Texas.