Critical Comparison: TotalEnergies (NYSE:TTE) & Extraction Oil & Gas (OTCMKTS:XOGAQ)

Extraction Oil & Gas (OTCMKTS:XOGAQ) and TotalEnergies (NYSE:TTE) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Valuation & Earnings

This table compares Extraction Oil & Gas and TotalEnergies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Extraction Oil & Gas	$906.64 million	0.01	-$1.39 billion	($0.46)	-0.13
TotalEnergies	$210.24 billion	0.78	$21.38 billion	$8.86	7.86

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

Profitability

This table compares Extraction Oil & Gas and TotalEnergies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Extraction Oil & Gas	-223.86%	-56.20%	-11.52%
TotalEnergies	9.49%	17.92%	7.56%

Volatility and Risk

Extraction Oil & Gas has a beta of 2.1, meaning that its share price is 110% more volatile than the S&P 500. Comparatively, TotalEnergies has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.

Insider & Institutional Ownership

38.6% of Extraction Oil & Gas shares are held by institutional investors. Comparatively, 13.2% of TotalEnergies shares are held by institutional investors. 6.0% of Extraction Oil & Gas shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Extraction Oil & Gas and TotalEnergies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Extraction Oil & Gas	0	0	0	0	N/A
TotalEnergies	0	3	1	0	2.25

TotalEnergies has a consensus target price of $82.00, suggesting a potential upside of 18.69%. Given TotalEnergies’ higher possible upside, analysts plainly believe TotalEnergies is more favorable than Extraction Oil & Gas.

Summary

TotalEnergies beats Extraction Oil & Gas on 10 of the 13 factors compared between the two stocks.

About Extraction Oil & Gas

Extraction Oil & Gas, Inc., an independent oil and gas company, focuses on the acquisition, development, and production of oil, natural gas, and natural gas liquid reserves in the Rocky Mountain region, primarily in the Wattenberg Field of the Denver-Julesburg (DJ) Basin of Colorado. The company also engages in the construction and support of midstream assets to gather, process, and produce crude oil and gas. As of December 31, 2019, it had approximately 169,900 net acres of contiguous acreage blocks in the productive areas of the DJ Basin; held approximately 125,500 net acres outside of the Core DJ Basin; had estimated proved reserves of approximately 254.1 MMBoe; and had 1,509 gross producing wells. The company was founded in 2012 and is headquartered in Denver, Colorado. On June 14, 2020, Extraction Oil & Gas, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

About TotalEnergies

TotalEnergies SE, a multi-energy company, produces and markets oil and biofuels, natural gas, green gases, renewables, and electricity in France, rest of Europe, North America, Africa, and internationally. It operates through five segments: Exploration & Production, Integrated LNG, Integrated Power, Refining & Chemicals, and Marketing & Services. The Exploration & Production segment is involved in the exploration and production of oil and natural gas. The Integrated LNG segment comprises the integrated gas chain, including upstream and midstream liquified natural gas (LNG) activities, as well as biogas, hydrogen, and gas trading activities. The Integrated Power segment includes generation, storage, electricity trading, and B2B-B2C distribution of gas and electricity. The Refining & Chemicals segment consists of refining, petrochemicals, and specialty chemicals. This segment also includes oil supply, trading, and marine shipping activities. The Marketing & Services segment supplies and markets petroleum products. The company was formerly known as TOTAL SE and changed its name to TotalEnergies SE in June 2021. TotalEnergies SE was founded in 1924 and is headquartered in Courbevoie, France.