DHT (NYSE:DHT) versus Northern Oil and Gas (NYSE:NOG) Financial Analysis

DHT (NYSE:DHT) and Northern Oil and Gas (NYSE:NOG) are both mid-cap energy companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.

Risk and Volatility

DHT has a beta of -0.03, meaning that its share price is 103% less volatile than the S&P 500. Comparatively, Northern Oil and Gas has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for DHT and Northern Oil and Gas, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DHT	0	2	1	1	2.75
Northern Oil and Gas	2	5	3	0	2.10

DHT presently has a consensus price target of $27.00, suggesting a potential upside of 30.45%. Northern Oil and Gas has a consensus price target of $31.56, suggesting a potential upside of 38.56%. Given Northern Oil and Gas’ higher possible upside, analysts clearly believe Northern Oil and Gas is more favorable than DHT.

Dividends

DHT pays an annual dividend of $4.88 per share and has a dividend yield of 23.6%. Northern Oil and Gas pays an annual dividend of $1.80 per share and has a dividend yield of 7.9%. DHT pays out 166.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Northern Oil and Gas pays out -34.7% of its earnings in the form of a dividend. Northern Oil and Gas has increased its dividend for 4 consecutive years.

Profitability

This table compares DHT and Northern Oil and Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DHT	65.52%	39.40%	28.63%
Northern Oil and Gas	-25.35%	18.69%	6.85%

Institutional and Insider Ownership

58.5% of DHT shares are held by institutional investors. Comparatively, 98.8% of Northern Oil and Gas shares are held by institutional investors. 1.6% of DHT shares are held by company insiders. Comparatively, 2.8% of Northern Oil and Gas shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares DHT and Northern Oil and Gas”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DHT	$723.00 million	4.61	$211.09 million	$2.94	7.04
Northern Oil and Gas	$2.16 billion	1.13	$38.76 million	($5.18)	-4.40

DHT has higher earnings, but lower revenue than Northern Oil and Gas. Northern Oil and Gas is trading at a lower price-to-earnings ratio than DHT, indicating that it is currently the more affordable of the two stocks.

Summary

DHT beats Northern Oil and Gas on 10 of the 18 factors compared between the two stocks.

About DHT

DHT Holdings, Inc., through its subsidiaries, owns and operates crude oil tankers primarily in Monaco, Singapore, and Norway. The company also offers technical management services. As of March 15, 2024, it had a fleet of 24 very large crude carriers. The company was incorporated in 2005 and is headquartered in Hamilton, Bermuda.

About Northern Oil and Gas

Northern Oil and Gas, Inc., an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the United States. It primarily holds interests in the Williston Basin, the Appalachian Basin, and the Permian Basin in the United States. The company is based in Minnetonka, Minnesota.