Critical Comparison: Occidental Petroleum Corporation (OXY) versus Transportadora De Gas Sa Ord B (TGS)
Occidental Petroleum Corporation (NYSE: OXY) and Transportadora De Gas Sa Ord B (NYSE:TGS) are both mid-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.
Risk & Volatility
Occidental Petroleum Corporation has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Transportadora De Gas Sa Ord B has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.
Insider & Institutional Ownership
80.9% of Occidental Petroleum Corporation shares are owned by institutional investors. Comparatively, 8.4% of Transportadora De Gas Sa Ord B shares are owned by institutional investors. 0.3% of Occidental Petroleum Corporation 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.
Occidental Petroleum Corporation pays an annual dividend of $3.08 per share and has a dividend yield of 5.0%. Transportadora De Gas Sa Ord B does not pay a dividend. Occidental Petroleum Corporation pays out 2,369.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Transportadora De Gas Sa Ord B has raised its dividend for 14 consecutive years.
This is a breakdown of current recommendations and price targets for Occidental Petroleum Corporation and Transportadora De Gas Sa Ord B, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Occidental Petroleum Corporation||2||9||6||0||2.24|
|Transportadora De Gas Sa Ord B||0||0||0||0||N/A|
Occidental Petroleum Corporation presently has a consensus target price of $65.14, indicating a potential upside of 5.82%. Given Occidental Petroleum Corporation’s higher possible upside, analysts clearly believe Occidental Petroleum Corporation is more favorable than Transportadora De Gas Sa Ord B.
This table compares Occidental Petroleum Corporation and Transportadora De Gas Sa Ord B’s 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%|
|Transportadora De Gas Sa Ord B||19.92%||65.69%||20.26%|
Valuation and Earnings
This table compares Occidental Petroleum Corporation and Transportadora De Gas Sa Ord B’s gross 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||4.11||$3.67 billion||$0.13||473.54|
|Transportadora De Gas Sa Ord B||$550.78 million||5.01||$216.65 million||$0.79||21.99|
Occidental Petroleum Corporation has higher revenue and earnings than Transportadora De Gas Sa Ord B. Transportadora De Gas Sa Ord B 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.
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).
Transportadora De Gas Sa Ord B Company Profile
Transportadora de Gas del Sur S.A. is engaged in the transportation of natural gas and production and commercialization of natural gas liquids (Liquids). The Company operates through four segments: Natural Gas Transportation Services, Liquids Production and Commercialization, Other Services and Telecommunications. The Company’s pipeline system connects gas fields in southern and western Argentina with gas distributors and industries in those areas and in the greater Buenos Aires area. It also provides midstream services, which consist of gas treatment, removal of impurities from the natural gas stream, gas compression, wellhead gas gathering and pipeline construction, operation and maintenance services. The Company transports gas through approximately 5,675 miles of pipeline, of which it owns 4,745 miles. It operates the remaining 930 miles, which are owned by the Gas Trusts.
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