Occidental Petroleum Corporation (NYSE: OXY) and Pioneer Natural Resources (NYSE:PXD) are both large-cap oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, earnings, institutional ownership and profitability.

Dividends

Occidental Petroleum Corporation pays an annual dividend of $3.04 per share and has a dividend yield of 5.1%. Pioneer Natural Resources pays an annual dividend of $0.08 per share and has a dividend yield of 0.1%. Occidental Petroleum Corporation pays out 2,338.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pioneer Natural Resources pays out 8.2% of its earnings in the form of a dividend. Pioneer Natural Resources has raised its dividend for 14 consecutive years.

Volatility and Risk

Occidental Petroleum Corporation has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, Pioneer Natural Resources has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.

Valuation & Earnings

This table compares Occidental Petroleum Corporation and Pioneer Natural Resources’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Occidental Petroleum Corporation $11.45 billion 3.95 $3.67 billion $0.13 455.00
Pioneer Natural Resources $4.89 billion 4.59 $1.79 billion $0.98 134.64

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

Profitability

This table compares Occidental Petroleum Corporation and Pioneer Natural Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Occidental Petroleum Corporation 0.91% 0.13% 0.06%
Pioneer Natural Resources 3.10% 1.79% 1.15%

Analyst Ratings

This is a summary of recent ratings for Occidental Petroleum Corporation and Pioneer Natural Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Occidental Petroleum Corporation 2 8 6 0 2.25
Pioneer Natural Resources 0 3 19 0 2.86

Occidental Petroleum Corporation presently has a consensus price target of $66.38, indicating a potential upside of 12.23%. Pioneer Natural Resources has a consensus price target of $211.11, indicating a potential upside of 59.99%. Given Pioneer Natural Resources’ stronger consensus rating and higher possible upside, analysts clearly believe Pioneer Natural Resources is more favorable than Occidental Petroleum Corporation.

Institutional and Insider Ownership

81.4% of Occidental Petroleum Corporation shares are owned by institutional investors. Comparatively, 92.9% of Pioneer Natural Resources shares are owned by institutional investors. 0.3% of Occidental Petroleum Corporation shares are owned by insiders. Comparatively, 0.9% of Pioneer Natural Resources shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Pioneer Natural Resources beats Occidental Petroleum Corporation on 13 of the 17 factors compared between the two stocks.

Occidental Petroleum Corporation Company Profile

Occidental Petroleum Corporation (Occidental) is an oil and gas exploration and production company. The Company operates through three segments: oil and gas, chemical (OxyChem), and midstream and marketing. The oil and gas segment explores for, develops and produces oil and condensate, natural gas liquids (NGLs) and natural gas. The OxyChem segment manufactures and markets basic chemicals and vinyls. The midstream and marketing segment gathers, processes, transports, stores, purchases and markets oil, condensate, NGLs, natural gas, carbon dioxide (CO2) and power. The Company also trades around its assets, including transportation and storage capacity. Additionally, the midstream and marketing segment invests in entities that conduct similar activities. Occidental’s domestic upstream oil and gas operations are located in New Mexico and Texas. Its international operations are located in Bolivia, Colombia, Oman, Qatar and the United Arab Emirates (UAE).

Pioneer Natural Resources Company Profile

Pioneer Natural Resources Company is an oil and gas exploration and production company. The Company explores for, develops and produces oil, natural gas liquids (NGLs) and gas within the United States, with operations primarily in the Permian Basin in West Texas, the Eagle Ford Shale play in South Texas, the Raton field in southeast Colorado and the West Panhandle field in the Texas Panhandle. As of December 31, 2016, the Company owned interests in eight gas processing plants and nine treating facilities. As of December 31, 2016, its Spraberry/Wolfcamp field covered approximately 800,000 gross acres (690,000 net acres). The Company completed 12 Eagle Ford Shale wells during the fiscal year ended December 31, 2016. As of December 31, 2016, the Company owned approximately 185,000 gross acres (165,000 net acres) in the center of the Raton Basin. As of December 31, 2016, the Company’s gas had an average energy content of 1,400 British thermal unit (Btu).

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