Comparing Golar LNG (NASDAQ:GLNG) & OMV (OTCMKTS:OMVKY)

OMV (OTCMKTS:OMVKY) and Golar LNG (NASDAQ:GLNG) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Valuation and Earnings

This table compares OMV and Golar LNG”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OMV	$36.77 billion	0.53	$1.57 billion	$4.22	3.52
Golar LNG	$260.37 million	16.30	$50.84 million	$0.57	71.21

OMV has higher revenue and earnings than Golar LNG. OMV is trading at a lower price-to-earnings ratio than Golar LNG, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares OMV and Golar LNG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OMV	4.57%	8.25%	4.12%
Golar LNG	17.96%	6.07%	3.12%

Dividends

OMV pays an annual dividend of $0.58 per share and has a dividend yield of 3.9%. Golar LNG pays an annual dividend of $1.00 per share and has a dividend yield of 2.5%. OMV pays out 13.7% of its earnings in the form of a dividend. Golar LNG pays out 175.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Golar LNG has increased its dividend for 2 consecutive years. OMV is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

92.2% of Golar LNG shares are held by institutional investors. 0.0% of Golar LNG shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for OMV and Golar LNG, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OMV	3	3	1	0	1.71
Golar LNG	0	3	3	3	3.00

Golar LNG has a consensus target price of $49.50, suggesting a potential upside of 21.95%. Given Golar LNG’s stronger consensus rating and higher probable upside, analysts clearly believe Golar LNG is more favorable than OMV.

Volatility & Risk

OMV has a beta of 0.01, suggesting that its stock price is 99% less volatile than the S&P 500. Comparatively, Golar LNG has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500.

Summary

Golar LNG beats OMV on 11 of the 18 factors compared between the two stocks.

About OMV

OMV Aktiengesellschaft operates as an energy and chemicals company in Austria, Germany, Romania, Norway, Belgium, New Zealand, the United Arab Emirates, the rest of Central and Eastern Europe, the rest of Europe, and internationally. It operates through three segments: Chemicals & Materials, Fuels & Feedstock, and Energy. The company engages in the exploration, development, and production of oil and gas in the regions of Central and Eastern Europe, the Middle East and Africa, the North Sea, and the Asia Pacific; and refining and marketing of fuels and feedstock, as well as supply, marketing, trading, and logistics of gas in Romania and Turkey. In addition, the company provides advanced and circular polyolefin solutions, and base chemicals, as well as engages in the recycling of plastics. It has refineries in Europe, Schwechat, and Burghausen; filling stations in eight European countries; and gas storage facilities in Austria and Germany, as well as a gas-fired power plant in Romania. The company was founded in 1956 and is headquartered in Vienna, Austria.

About Golar LNG

Golar LNG Limited designs, converts, owns, and operates marine infrastructure for the liquefaction of natural gas. The company operates through three segments: FLNG, Corporate and Other, and Shipping. It engages in the regasification, storage, and offloading of liquefied natural gas (LNG); operation of floating liquefaction natural gas (FLNG) vessels or projects; transportation of LNG carriers; and vessel management activities. Golar LNG Limited was founded in 1946 and is headquartered in Hamilton, Bermuda.