Critical Analysis: PetroQuest Energy (OTCMKTS:PQUE) versus EOG Resources (NYSE:EOG)

EOG Resources (NYSE:EOG) and PetroQuest Energy (OTCMKTS:PQUE) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Profitability

This table compares EOG Resources and PetroQuest Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EOG Resources	29.18%	23.77%	15.24%
PetroQuest Energy	-4.93%	N/A	-3.76%

Earnings and Valuation

This table compares EOG Resources and PetroQuest Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EOG Resources	$24.19 billion	3.10	$7.59 billion	$12.42	10.72
PetroQuest Energy	$108.29 million	0.00	-$6.63 million	($0.55)	-0.04

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

Volatility and Risk

EOG Resources has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, PetroQuest Energy has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for EOG Resources and PetroQuest Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EOG Resources	0	14	7	1	2.41
PetroQuest Energy	0	0	0	0	0.00

EOG Resources presently has a consensus target price of $144.20, indicating a potential upside of 8.35%. Given EOG Resources’ stronger consensus rating and higher probable upside, research analysts clearly believe EOG Resources is more favorable than PetroQuest Energy.

Institutional & Insider Ownership

89.9% of EOG Resources shares are held by institutional investors. Comparatively, 1.6% of PetroQuest Energy shares are held by institutional investors. 0.3% of EOG Resources shares are held by insiders. Comparatively, 8.8% of PetroQuest Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

EOG Resources beats PetroQuest Energy on 13 of the 15 factors compared between the two stocks.

About EOG Resources

EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, natural gas liquids, and natural gas primarily in producing basins in the United States, the Republic of Trinidad and Tobago and internationally. The company was formerly known as Enron Oil & Gas Company. EOG Resources, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.

About PetroQuest Energy

PetroQuest Energy, Inc. operates as an independent oil and gas company in Texas and Louisiana. The company acquires, explores for, develops, and operates oil and gas properties. As of December 31, 2017, it had estimated proved reserves of 1.8 million barrels of oil; 19.4 billion cubic feet equivalent of natural gas liquids; and 125.4 billion cubic feet of natural gas. PetroQuest Energy, Inc. was founded in 1983 and is headquartered in Lafayette, Louisiana.