Analyzing Total (TOT) & Cabot Oil & Gas (COG)

Total (NYSE:TOT) and Cabot Oil & Gas (NYSE:COG) are both large-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for Total and Cabot Oil & Gas, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Total 1 4 10 1 2.69
Cabot Oil & Gas 2 6 15 0 2.57

Total presently has a consensus price target of $48.17, suggesting a potential downside of 20.79%. Cabot Oil & Gas has a consensus price target of $29.21, suggesting a potential upside of 21.86%. Given Cabot Oil & Gas’ higher possible upside, analysts clearly believe Cabot Oil & Gas is more favorable than Total.

Earnings & Valuation

This table compares Total and Cabot Oil & Gas’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Total $171.49 billion 0.88 $8.63 billion $4.12 14.76
Cabot Oil & Gas $1.76 billion 5.99 $100.39 million $0.48 49.94

Total has higher revenue and earnings than Cabot Oil & Gas. Total is trading at a lower price-to-earnings ratio than Cabot Oil & Gas, indicating that it is currently the more affordable of the two stocks.

Dividends

Total pays an annual dividend of $2.48 per share and has a dividend yield of 4.1%. Cabot Oil & Gas pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. Total pays out 60.2% of its earnings in the form of a dividend. Cabot Oil & Gas pays out 50.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Risk & Volatility

Total has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, Cabot Oil & Gas has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500.

Profitability

This table compares Total and Cabot Oil & Gas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Total 5.25% 10.19% 4.85%
Cabot Oil & Gas 7.75% 10.84% 5.61%

Institutional and Insider Ownership

5.3% of Total shares are owned by institutional investors. Comparatively, 94.8% of Cabot Oil & Gas shares are owned by institutional investors. 1.6% of Cabot Oil & Gas shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Cabot Oil & Gas beats Total on 10 of the 17 factors compared between the two stocks.

About Total

TOTAL S.A. operates as an integrated oil and gas company worldwide. The company operates through Exploration & Production; Gas, Renewables & Power; Refining & Chemicals; and Marketing & Services segments. The Exploration & Production segment engages in the exploration and production activities in approximately 50 countries, and produces oil or gas in approximately 30 countries. The Gas, Renewables & Power segment is involved in the production, liquefaction, and trading of natural gas; production and trading of electricity, liquefied natural gas(LNG), liquefied petroleum gas, and petcoke and sulfur; LNG regasification; and transportation and storage of natural gas. This segment also designs, manufactures and supplies photovoltaic cells and panels. The Refining & Chemicals segment refines petrochemicals, including olefins and aromatics; and polymer derivatives, such as polyethylene, polypropylene, polystyrene, and hydrocarbon resins, as well as engages in biomass conversion and elastomer processing. It is also involved in trading and shipping crude oil and petroleum products. The Marketing & Services segment supplies and markets petroleum products, including bulk fuel, aviation fuel, special fluids, LPG, bitumen, heavy fuels, and marine bunkers; produces and sells lubricants. It operates approximately 16,000 service stations. TOTAL S.A. also develops renewable energies with a focus on solar and biomass. As of December 31, 2016, the company had 11,475 Mboe of combined proved reserves of oil and gas. TOTAL S.A. was founded in 1924 and is headquartered in Courbevoie, France.

About Cabot Oil & Gas

Cabot Oil & Gas Corporation, an independent oil and gas company, explores for, exploits, develops, produces, and markets natural gas, oil, and natural gas liquids in the United States. It primarily focuses on the Marcellus Shale with approximately 172,000 net acres in the dry gas window of the play located in Susquehanna County, Pennsylvania; and the Eagle Ford Shale with approximately 79,000 net acres in the oil window of the play located in Atascosa, Frio, and La Salle Counties, Texas. The company sells its natural gas to industrial customers, local distribution companies, gas marketers, and power generation facilities through gathering systems and pipelines. As of December 31, 2017, it had proved reserves of approximately 9,726 billion cubic feet of natural gas equivalent. The company was founded in 1989 and is headquartered in Houston, Texas.

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