Lonestar Resources US (NASDAQ:LONE) and Occidental Petroleum (NYSE:OXY) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, dividends, risk and profitability.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Lonestar Resources US and Occidental Petroleum, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lonestar Resources US 0 0 6 0 3.00
Occidental Petroleum 0 7 14 1 2.73

Lonestar Resources US presently has a consensus target price of $10.70, indicating a potential upside of 67.45%. Occidental Petroleum has a consensus target price of $88.44, indicating a potential upside of 30.84%. Given Lonestar Resources US’s stronger consensus rating and higher possible upside, research analysts plainly believe Lonestar Resources US is more favorable than Occidental Petroleum.

Risk and Volatility

Lonestar Resources US has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500. Comparatively, Occidental Petroleum has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.

Valuation and Earnings

This table compares Lonestar Resources US and Occidental Petroleum’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lonestar Resources US $94.07 million 1.67 -$43.48 million ($0.42) -15.21
Occidental Petroleum $13.27 billion 3.84 $1.31 billion $0.89 75.94

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

Profitability

This table compares Lonestar Resources US and Occidental Petroleum’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lonestar Resources US -38.32% -3.88% -1.08%
Occidental Petroleum 22.19% 15.43% 7.43%

Dividends

Occidental Petroleum pays an annual dividend of $3.12 per share and has a dividend yield of 4.6%. Lonestar Resources US does not pay a dividend. Occidental Petroleum pays out 350.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Occidental Petroleum has raised its dividend for 15 consecutive years.

Insider & Institutional Ownership

53.1% of Lonestar Resources US shares are owned by institutional investors. Comparatively, 81.6% of Occidental Petroleum shares are owned by institutional investors. 2.3% of Lonestar Resources US shares are owned by company insiders. Comparatively, 0.3% of Occidental Petroleum shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Occidental Petroleum beats Lonestar Resources US on 14 of the 18 factors compared between the two stocks.

Lonestar Resources US Company Profile

Lonestar Resources US Inc., an independent oil and gas company, engages in the acquisition, development, and production of unconventional oil, natural gas liquids, and natural gas properties in the United States. The company primarily focuses on Eagle Ford Shale properties in Texas counties. Lonestar Resources US Inc. was incorporated in 2015 and is headquartered in Fort Worth, Texas.

Occidental Petroleum Company Profile

Occidental Petroleum Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties in the United States and internationally. The company operates through three segments: Oil and Gas, Chemical, 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 Chemical segment manufactures and markets basic chemicals, including chlorine, caustic soda, chlorinated organics, potassium chemicals, ethylene dichloride, chlorinated isocyanurates, sodium silicates, and calcium chloride; 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 trades around its assets consisting of transportation and storage capacity; operates a crude oil export terminal; and invests in entities. Occidental Petroleum Corporation was founded in 1920 and is headquartered in Houston, Texas.

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