Canadian Natural Resources (NYSE:CNQ – Get Free Report) and Chesapeake Energy (OTCMKTS:CHKAQ – Get Free Report) are both oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.
Profitability
This table compares Canadian Natural Resources and Chesapeake Energy’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Canadian Natural Resources | 18.21% | 20.58% | 10.69% |
Chesapeake Energy | -162.46% | N/A | -3.45% |
Analyst Recommendations
This is a summary of current ratings and price targets for Canadian Natural Resources and Chesapeake Energy, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Canadian Natural Resources | 0 | 5 | 2 | 0 | 2.29 |
Chesapeake Energy | 0 | 0 | 0 | 0 | N/A |
Insider & Institutional Ownership
74.0% of Canadian Natural Resources shares are owned by institutional investors. Comparatively, 2.0% of Chesapeake Energy shares are owned by institutional investors. 5.0% of Canadian Natural Resources shares are owned by company insiders. Comparatively, 1.1% of Chesapeake Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
Canadian Natural Resources has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500. Comparatively, Chesapeake Energy has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.
Earnings and Valuation
This table compares Canadian Natural Resources and Chesapeake Energy’s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Canadian Natural Resources | $30.25 billion | 2.73 | $6.10 billion | $5.02 | 15.37 |
Chesapeake Energy | $8.49 billion | 0.00 | -$308.00 million | ($54.00) | -0.06 |
Canadian Natural Resources has higher revenue and earnings than Chesapeake Energy. Chesapeake Energy is trading at a lower price-to-earnings ratio than Canadian Natural Resources, indicating that it is currently the more affordable of the two stocks.
Summary
Canadian Natural Resources beats Chesapeake Energy on 13 of the 13 factors compared between the two stocks.
About Canadian Natural Resources
Canadian Natural Resources Limited acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs). The company offers light and medium crude oil, primary heavy crude oil, Pelican Lake heavy crude oil, bitumen (thermal oil), and synthetic crude oil (SCO). The company's midstream assets include two pipeline systems; and a 50% working interest in an 84-megawatt cogeneration plant at Primrose. It operates primarily in Western Canada; the United Kingdom portion of the North Sea; and Offshore Africa. The company was formerly known as AEX Minerals Corporation and changed its name to Canadian Natural Resources Limited in December 1975. Canadian Natural Resources Limited was incorporated in 1973 and is headquartered in Calgary, Canada.
About Chesapeake Energy
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.
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