Head to Head Review: Repsol (OTCMKTS:REPYY) & Chesapeake Energy (NASDAQ:EXE)

Repsol (OTCMKTS:REPYY) and Chesapeake Energy (NASDAQ:EXE) are both large-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Repsol and Chesapeake Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Repsol	$63.35 billion	0.24	$3.43 billion	$1.90	6.57
Chesapeake Energy	$8.72 billion	2.62	$2.42 billion	$1.62	61.04

Repsol has higher revenue and earnings than Chesapeake Energy. Repsol is trading at a lower price-to-earnings ratio than Chesapeake Energy, indicating that it is currently the more affordable of the two stocks.

Dividends

Repsol pays an annual dividend of $0.85 per share and has a dividend yield of 6.8%. Chesapeake Energy pays an annual dividend of $2.30 per share and has a dividend yield of 2.3%. Repsol pays out 44.7% of its earnings in the form of a dividend. 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. Repsol is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent recommendations for Repsol and Chesapeake Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Repsol	0	4	1	1	2.50
Chesapeake Energy	0	3	4	1	2.75

Chesapeake Energy has a consensus price target of $101.71, suggesting a potential upside of 2.86%. Given Chesapeake Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Chesapeake Energy is more favorable than Repsol.

Institutional & Insider Ownership

0.3% of Repsol shares are owned by institutional investors. Comparatively, 97.9% of Chesapeake Energy shares are owned by institutional investors. 1.0% of Repsol shares are owned by company insiders. Comparatively, 0.2% 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 company will outperform the market over the long term.

Risk and Volatility

Repsol has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, Chesapeake Energy has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Repsol	3.74%	13.09%	6.21%
Chesapeake Energy	6.07%	2.74%	2.08%

Summary

Repsol beats Chesapeake Energy on 9 of the 16 factors compared between the two stocks.

About Repsol

Repsol, S.A. operates as a multi-e energy company worldwide. Its Upstream segment engages in the exploration, development, and production of crude oil and natural gas reserves, as well as develops low-carbon geological solutions. The company's Industrial segment is involved in refining activities and petrochemicals business; the trading, transport, and sale of crude oil, natural gas, and fuels; and development of hydrogen, biomethane, sustainable biofuels, and synthetic fuels. Its Customer segment is involved in mobility; and sale of fuel products, electricity and gas, lubricants, and other specialties. The company's Low-Carbon Generation segment engages in the low-emissions electricity generation and renewable sources. The company also offers asphalt products; installs, operates, and manages service stations; provides maritime services; constructs and operates oil refineries; explores and produces hydrocarbons; offers human resource; distributes and supplies electricity; and develops new energy projects, solar, and wind projects, as well as produces and sells chemical products and lubricants. In addition, it is involved in fuel and special products sale, research, trading and transport, insurance and reinsurance, safety, and financing activities; development of production processes, storage, transport, use, consumption, and transformation of hydrogen; decarbonization activities; and promotion, design, construction, and operation of molecular recycling facilities. Further, the company produces synthetic oil cloths; and invests in liquefaction plant project. The company was formerly known as Repsol YPF, S.A. and changed its name to Repsol, S.A. in May 2012. Repsol, S.A. was founded in 1927 and is headquartered in Madrid, Spain.

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.