Critical Review: EOG Resources (NYSE:EOG) vs. Blue Dolphin Energy (OTCMKTS:BDCO)

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

Earnings & Valuation

This table compares EOG Resources and Blue Dolphin 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	$23.76 billion	2.97	$7.59 billion	$12.42	10.11
Blue Dolphin Energy	$396.05 million	0.09	$31.01 million	$0.26	8.82

EOG Resources has higher revenue and earnings than Blue Dolphin Energy. Blue Dolphin 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.

Institutional & Insider Ownership

89.9% of EOG Resources shares are owned by institutional investors. 0.3% of EOG Resources shares are owned by company insiders. Comparatively, 87.5% of Blue Dolphin Energy shares are owned by company 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.

Profitability

This table compares EOG Resources and Blue Dolphin 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%
Blue Dolphin Energy	1.15%	9.56%	3.81%

Analyst Ratings

This is a summary of recent recommendations for EOG Resources and Blue Dolphin Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EOG Resources	0	13	8	1	2.45
Blue Dolphin Energy	0	0	0	0	0.00

EOG Resources presently has a consensus price target of $143.90, indicating a potential upside of 14.55%. Given EOG Resources’ stronger consensus rating and higher possible upside, equities research analysts plainly believe EOG Resources is more favorable than Blue Dolphin Energy.

Volatility and Risk

EOG Resources has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, Blue Dolphin Energy has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500.

Summary

EOG Resources beats Blue Dolphin Energy on 14 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 Blue Dolphin Energy

Blue Dolphin Energy Company, an independent downstream energy company, engages in the refining and marketing of petroleum products in the United States. It operates through two segments, Refinery Operations, and Tolling and Terminaling. The company produces finished products, including jet fuel, as well as various intermediate products, such as naphtha, heavy oil mud blendstock, and atmospheric gas oil; and conducts tolling and terminaling services at the Nixon facility. It also provides storage tank rentals and ancillary services. The company was incorporated in 1986 and is headquartered in Houston, Texas. Blue Dolphin Energy Company is a subsidiary of Lazarus Energy Holdings, LLC.