Occidental Petroleum (NYSE:OXY) versus National Fuel Gas (NYSE:NFG) Financial Analysis

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

Dividends

Occidental Petroleum pays an annual dividend of $0.96 per share and has a dividend yield of 2.2%. National Fuel Gas pays an annual dividend of $2.14 per share and has a dividend yield of 2.4%. Occidental Petroleum pays out 39.0% of its earnings in the form of a dividend. National Fuel Gas pays out 497.7% 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 increased its dividend for 5 consecutive years and National Fuel Gas has increased its dividend for 55 consecutive years. National Fuel Gas is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Occidental Petroleum and National Fuel Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Occidental Petroleum	11.20%	16.60%	5.18%
National Fuel Gas	1.91%	18.55%	6.34%

Analyst Ratings

This is a summary of recent recommendations for Occidental Petroleum and National Fuel Gas, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Occidental Petroleum	2	14	5	0	2.14
National Fuel Gas	0	1	2	1	3.00

Occidental Petroleum presently has a consensus price target of $53.62, suggesting a potential upside of 25.37%. National Fuel Gas has a consensus price target of $95.33, suggesting a potential upside of 7.28%. Given Occidental Petroleum’s higher probable upside, equities analysts plainly believe Occidental Petroleum is more favorable than National Fuel Gas.

Earnings & Valuation

This table compares Occidental Petroleum and National Fuel Gas”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Occidental Petroleum	$26.88 billion	1.57	$3.06 billion	$2.46	17.39
National Fuel Gas	$1.94 billion	4.13	$77.51 million	$0.43	206.65

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

Insider & Institutional Ownership

88.7% of Occidental Petroleum shares are owned by institutional investors. Comparatively, 74.0% of National Fuel Gas shares are owned by institutional investors. 0.5% of Occidental Petroleum shares are owned by company insiders. Comparatively, 1.4% of National Fuel Gas shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Occidental Petroleum has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, National Fuel Gas has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.

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 National Fuel Gas

National Fuel Gas Company operates as a diversified energy company. It operates through four segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. The Exploration and Production segment explores for, develops, and produces natural gas and oil. The Pipeline and Storage segment provides interstate natural gas transportation services through an integrated gas pipeline system in Pennsylvania and New York; and owns and operates underground natural gas storage fields. This segment also transports natural gas for National Fuel Gas Distribution Corporation, as well as for other utilities, industrial companies, and power producers in New York State. The Gathering segment builds, owns, and operates natural gas processing and pipeline gathering facilities in the Appalachian region, as well as provides gathering services to Seneca. The Utility segment sells natural gas or provides natural gas utility services to various customers in Buffalo, Niagara Falls, and Jamestown, New York; and Erie and Sharon, Pennsylvania. National Fuel Gas Company was incorporated in 1902 and is headquartered in Williamsville, New York.