Contrasting Chesapeake Energy (OTCMKTS:CHKAQ) & Chesapeake Granite Wash Trust (OTCMKTS:CHKR)

Chesapeake Energy (OTCMKTS:CHKAQ) and Chesapeake Granite Wash Trust (OTCMKTS:CHKR) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.

Analyst Ratings

This is a summary of current ratings and target prices for Chesapeake Energy and Chesapeake Granite Wash Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chesapeake Energy 0 0 0 0 N/A
Chesapeake Granite Wash Trust 0 0 0 0 N/A

Profitability

This table compares Chesapeake Energy and Chesapeake Granite Wash Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chesapeake Energy -162.46% N/A -3.45%
Chesapeake Granite Wash Trust 50.40% 13.20% 13.20%

Insider & Institutional Ownership

2.0% of Chesapeake Energy shares are held by institutional investors. 1.1% of Chesapeake Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Chesapeake Energy has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, Chesapeake Granite Wash Trust has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500.

Valuation & Earnings

This table compares Chesapeake Energy and Chesapeake Granite Wash Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chesapeake Energy $8.49 billion 0.00 -$308.00 million ($54.00) -0.06
Chesapeake Granite Wash Trust $4.95 million N/A $3.40 million N/A N/A

Chesapeake Granite Wash Trust has lower revenue, but higher earnings than Chesapeake Energy.

Summary

Chesapeake Granite Wash Trust beats Chesapeake Energy on 6 of the 9 factors compared between the two stocks.

Chesapeake Energy Company Profile

Chesapeake Energy Corp. is an independent exploration and production company, which engages in acquisition, exploration and development of properties for the production of oil, natural gas and natural gas liquids from underground reservoirs. It focuses on projects located in Louisiana, Ohio, Oklahoma, Pennsylvania, Texas, and Wyoming. The company was founded by Aubrey K. McClendon and Tom L. Ward on May 18, 1989 and is headquartered in Oklahoma City, OK.

Chesapeake Granite Wash Trust Company Profile

Chesapeake Granite Wash Trust owns royalty interests in oil, natural gas liquids, and natural gas properties located in the Colony Granite Wash play in Washita County in the Anadarko Basin of Western Oklahoma. The company has royalty interests in 69 producing wells and 118 development wells, and in approximately 26,400 net acres of area. As of December 31, 2020, its reserve estimates for the royalty interests included 2,736 thousand barrels of oil equivalent of proved developed reserves. Chesapeake Granite Wash Trust was founded in 2011 and is based in Houston, Texas.

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