Extraction Oil & Gas (OTCMKTS:XOGAQ) and Chesapeake Energy (OTCMKTS:CHKAQ) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.
Profitability
This table compares Extraction Oil & Gas and Chesapeake Energy's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Extraction Oil & Gas | -223.86% | -56.20% | -11.52% |
| Chesapeake Energy | -162.46% | N/A | -3.45% |
Insider & Institutional Ownership
38.6% of Extraction Oil & Gas shares are held by institutional investors. Comparatively, 2.0% of Chesapeake Energy shares are held by institutional investors. 6.0% of Extraction Oil & Gas shares are held by company insiders. Comparatively, 1.1% of Chesapeake Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
Extraction Oil & Gas has a beta of 2.1, meaning that its share price is 110% more volatile than the S&P 500. Comparatively, Chesapeake Energy has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations for Extraction Oil & Gas and Chesapeake Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Extraction Oil & Gas | 0 | 0 | 0 | 0 | N/A |
| Chesapeake Energy | 2 | 0 | 0 | 0 | 1.00 |
Valuation and Earnings
This table compares Extraction Oil & Gas and Chesapeake Energy's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Extraction Oil & Gas | $906.64 million | 0.01 | $-1,387,410,000.00 | ($0.46) | -0.13 |
| Chesapeake Energy | $8.49 billion | 0.00 | $-308,000,000.00 | ($54.00) | -0.06 |
Chesapeake Energy has higher revenue and earnings than Extraction Oil & Gas. Extraction Oil & Gas is trading at a lower price-to-earnings ratio than Chesapeake Energy, indicating that it is currently the more affordable of the two stocks.
Summary
Chesapeake Energy beats Extraction Oil & Gas on 6 of the 11 factors compared between the two stocks.
