Analyzing Occidental Petroleum (NYSE:OXY) and Diversified Energy (NYSE:DEC)

Occidental Petroleum (NYSE:OXY) and Diversified Energy (NYSE:DEC) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.

Profitability

This table compares Occidental Petroleum and Diversified Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Occidental Petroleum	11.37%	16.33%	5.05%
Diversified Energy	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent recommendations and price targets for Occidental Petroleum and Diversified Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Occidental Petroleum	2	14	5	0	2.14
Diversified Energy	0	0	4	0	3.00

Occidental Petroleum currently has a consensus price target of $53.14, indicating a potential upside of 18.52%. Diversified Energy has a consensus price target of $20.75, indicating a potential upside of 39.86%. Given Diversified Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Diversified Energy is more favorable than Occidental Petroleum.

Earnings & Valuation

This table compares Occidental Petroleum and Diversified Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Occidental Petroleum	$27.55 billion	1.60	$4.70 billion	$2.46	18.23
Diversified Energy	$794.84 million	0.90	$758.02 million	N/A	N/A

Occidental Petroleum has higher revenue and earnings than Diversified Energy.

Dividends

Occidental Petroleum pays an annual dividend of $0.96 per share and has a dividend yield of 2.1%. Diversified Energy pays an annual dividend of $0.81 per share and has a dividend yield of 5.5%. Occidental Petroleum pays out 39.0% of its earnings in the form of a dividend. Occidental Petroleum has increased its dividend for 5 consecutive years.

Institutional and Insider Ownership

88.7% of Occidental Petroleum shares are held by institutional investors. Comparatively, 26.5% of Diversified Energy shares are held by institutional investors. 0.5% of Occidental Petroleum shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Occidental Petroleum has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Diversified Energy has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.

Summary

Occidental Petroleum beats Diversified Energy on 11 of the 15 factors compared between the two stocks.

About Occidental Petroleum

Occidental Petroleum Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, and North Africa. It operates through three segments: Oil and Gas, Chemical, and Midstream and Marketing. The company's Oil and Gas segment explores for, develops, and produces oil and condensate, natural gas liquids (NGLs), and natural gas. Its Chemical segment manufactures and markets basic chemicals, including chlorine, caustic soda, chlorinated organics, potassium chemicals, ethylene dichloride, chlorinated isocyanurates, sodium silicates, and calcium chloride; and vinyls comprising vinyl chloride monomer, polyvinyl chloride, and ethylene. The Midstream and Marketing segment gathers, processes, transports, stores, purchases, and markets oil, condensate, NGLs, natural gas, carbon dioxide, and power. This segment also invests in entities. Occidental Petroleum Corporation was founded in 1920 and is headquartered in Houston, Texas.

About Diversified Energy

Diversified Energy Company PLC operates as an independent owner and operator of producing natural gas and oil wells primarily in the Appalachian Basin of the United States. The company is involved in the production, marketing, and transportation of natural gas, natural gas liquids, crude oil, and condensates. Its assets consist of natural gas wells and gathering systems located in the states of Tennessee, Kentucky, Virginia, West Virginia, Ohio, Pennsylvania, Oklahoma, Texas, and Louisiana. The company was formerly known as Diversified Gas & Oil PLC and changed its name to Diversified Energy Company PLC in May 2021. Diversified Energy Company PLC was founded in 2001 and is headquartered in Birmingham, Alabama.