Comparing Chesapeake Energy (EXE) and Its Competitors

Chesapeake Energy (NASDAQ:EXE) is one of 286 publicly-traded companies in the “Crude petroleum & natural gas” industry, but how does it compare to its rivals? We will compare Chesapeake Energy to similar businesses based on the strength of its valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Profitability

This table compares Chesapeake Energy and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chesapeake Energy	6.07%	2.74%	2.08%
Chesapeake Energy Competitors	-3.45%	7.66%	6.82%

Earnings & Valuation

This table compares Chesapeake Energy and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Chesapeake Energy	$8.72 billion	$2.42 billion	52.44
Chesapeake Energy Competitors	$716.82 billion	$1.07 billion	-585.48

Chesapeake Energy’s rivals have higher revenue, but lower earnings than Chesapeake Energy. Chesapeake Energy is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

97.9% of Chesapeake Energy shares are held by institutional investors. Comparatively, 53.3% of shares of all “Crude petroleum & natural gas” companies are held by institutional investors. 58.0% of Chesapeake Energy shares are held by insiders. Comparatively, 9.9% of shares of all “Crude petroleum & natural gas” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Chesapeake Energy has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500. Comparatively, Chesapeake Energy’s rivals have a beta of -14.14, suggesting that their average stock price is 1,514% less volatile than the S&P 500.

Dividends

Chesapeake Energy pays an annual dividend of $2.30 per share and has a dividend yield of 2.7%. Chesapeake Energy pays out 142.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Crude petroleum & natural gas” companies pay a dividend yield of 10.8% and pay out 116.3% of their earnings in the form of a dividend. Chesapeake Energy lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a breakdown of current ratings and price targets for Chesapeake Energy and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chesapeake Energy	0	2	3	1	2.83
Chesapeake Energy Competitors	2150	11595	16190	624	2.50

Chesapeake Energy currently has a consensus target price of $99.20, indicating a potential upside of 16.58%. As a group, “Crude petroleum & natural gas” companies have a potential upside of 27.44%. Given Chesapeake Energy’s rivals higher probable upside, analysts clearly believe Chesapeake Energy has less favorable growth aspects than its rivals.

Summary

Chesapeake Energy beats its rivals on 8 of the 15 factors compared.

About Chesapeake Energy

Expand Energy Corporation is an independent natural gas producer principally in the United States. Expand Energy Corporation, formerly known as Chesapeake Energy Corporation, is based in OKLAHOMA CITY.