Head to Head Review: Birchcliff Energy (OTCMKTS:BIREF) & Devon Energy (NYSE:DVN)

Devon Energy (NYSE:DVN) and Birchcliff Energy (OTCMKTS:BIREF) are both oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, analyst recommendations, earnings and valuation.

Earnings and Valuation

This table compares Devon Energy and Birchcliff Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Devon Energy	$15.26 billion	1.62	$3.75 billion	$5.51	7.18
Birchcliff Energy	$548.41 million	1.81	$7.24 million	$0.11	33.55

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

Volatility & Risk

Devon Energy has a beta of 2.03, suggesting that its stock price is 103% more volatile than the S&P 500. Comparatively, Birchcliff Energy has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.

Dividends

Devon Energy pays an annual dividend of $0.88 per share and has a dividend yield of 2.2%. Birchcliff Energy pays an annual dividend of $0.29 per share and has a dividend yield of 7.9%. Devon Energy pays out 16.0% of its earnings in the form of a dividend. Birchcliff Energy pays out 263.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of current ratings for Devon Energy and Birchcliff Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Devon Energy	0	9	14	0	2.61
Birchcliff Energy	0	2	0	0	2.00

Devon Energy presently has a consensus target price of $52.15, indicating a potential upside of 31.86%. Given Devon Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Devon Energy is more favorable than Birchcliff Energy.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Devon Energy	22.60%	29.14%	14.46%
Birchcliff Energy	6.05%	1.82%	1.27%

Institutional & Insider Ownership

69.7% of Devon Energy shares are held by institutional investors. Comparatively, 0.8% of Birchcliff Energy shares are held by institutional investors. 0.7% of Devon Energy shares are held by company insiders. Comparatively, 1.5% of Birchcliff Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Devon Energy beats Birchcliff Energy on 12 of the 16 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 Birchcliff Energy

Birchcliff Energy Ltd., an intermediate oil and natural gas company, explores for, develops, and produces natural gas, light oil, condensate, and other natural gas liquids in Western Canada. The company holds interests in the areas of Montney/Doig Resource Play, including the Pouce Coupe and Gordondale properties in Alberta. Birchcliff Energy Ltd. was founded in 2004 and is headquartered in Calgary, Canada.