Chesapeake Energy (OTCMKTS:CHKAQ) and Continental Resources (NYSE:CLR) are both oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.
Profitability
This table compares Chesapeake Energy and Continental Resources' 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% |
Continental Resources | -10.54% | -2.05% | -0.91% |
Analyst Ratings
This is a summary of recent recommendations and price targets for Chesapeake Energy and Continental Resources, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Chesapeake Energy | 1 | 0 | 0 | 0 | 1.00 |
Continental Resources | 2 | 16 | 3 | 0 | 2.05 |
Continental Resources has a consensus price target of $21.0526, indicating a potential downside of 17.57%. Given Continental Resources' stronger consensus rating and higher possible upside, analysts clearly believe Continental Resources is more favorable than Chesapeake Energy.
Insider and Institutional Ownership
2.0% of Chesapeake Energy shares are owned by institutional investors. Comparatively, 14.8% of Continental Resources shares are owned by institutional investors. 1.1% of Chesapeake Energy shares are owned by company insiders. Comparatively, 79.6% of Continental Resources shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
Chesapeake Energy has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Continental Resources has a beta of 3.37, meaning that its stock price is 237% more volatile than the S&P 500.
Earnings & Valuation
This table compares Chesapeake Energy and Continental Resources' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Chesapeake Energy | $8.49 billion | 0.00 | $-308,000,000.00 | ($54.00) | -0.06 |
Continental Resources | $4.63 billion | 2.03 | $775.64 million | $2.25 | 11.35 |
Continental Resources has lower revenue, but higher earnings than Chesapeake Energy. Chesapeake Energy is trading at a lower price-to-earnings ratio than Continental Resources, indicating that it is currently the more affordable of the two stocks.
Summary
Continental Resources beats Chesapeake Energy on 11 of the 14 factors compared between the two stocks.