EQT (NYSE: EQT) and Tullow Oil (OTCMKTS:TUWOY) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.
Risk & Volatility
EQT has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, Tullow Oil has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500.
This table compares EQT and Tullow Oil’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
91.5% of EQT shares are owned by institutional investors. 1.0% of EQT shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares EQT and Tullow Oil’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|EQT||$3.38 billion||3.72||$1.51 billion||$1.47||32.32|
|Tullow Oil||$1.27 billion||1.48||-$599.90 million||($0.20)||-6.75|
EQT has higher revenue and earnings than Tullow Oil. Tullow Oil is trading at a lower price-to-earnings ratio than EQT, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for EQT and Tullow Oil, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
EQT presently has a consensus target price of $76.77, suggesting a potential upside of 61.59%. Given EQT’s stronger consensus rating and higher possible upside, research analysts clearly believe EQT is more favorable than Tullow Oil.
EQT pays an annual dividend of $0.12 per share and has a dividend yield of 0.3%. Tullow Oil does not pay a dividend. EQT pays out 8.2% of its earnings in the form of a dividend.
EQT beats Tullow Oil on 14 of the 16 factors compared between the two stocks.
EQT Corporation is a natural gas company. The Company operates through three segments: EQT Production, EQT Gathering and EQT Transmission. The EQT Production segment includes its exploration for, and development and production of, natural gas, natural gas liquids and a limited amount of crude oil, primarily in the Appalachian Basin. The EQT Production segment also includes the marketing activities of the Company. EQT Production’s properties are located in Pennsylvania, West Virginia, Kentucky and Virginia. The operations of EQT Gathering include the natural gas gathering activities of the Company, consisting solely of assets that are owned and operated by EQT Midstream Partners, LP (EQM). The operations of EQT Transmission include the natural gas transmission and storage activities of the Company, consisting solely of assets that are owned and operated by EQM. EQT Transmission focuses on various transmission projects, including Mountain Valley Pipeline and Transmission Expansion.
About Tullow Oil
Tullow Oil plc engages in the oil and gas exploration, development, and production activities. The company operates through West Africa, East Africa, and New Ventures segments. Its portfolio comprises approximately 100 licenses covering 253,034 square kilometers in 18 countries. The company was founded in 1985 and is headquartered in London, the United Kingdom.
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