Return Energy (CVE:RTN) and Gibson Energy (TSE:GEI) are both mid-cap energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.
Analyst Ratings
This is a summary of recent recommendations and price targets for Return Energy and Gibson Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Return Energy | 0 | 0 | 0 | 0 | N/A |
| Gibson Energy | 0 | 9 | 1 | 0 | 2.10 |
Gibson Energy has a consensus target price of C$23.88, suggesting a potential upside of 8.80%. Given Gibson Energy's higher possible upside, analysts plainly believe Gibson Energy is more favorable than Return Energy.
Earnings & Valuation
This table compares Return Energy and Gibson Energy's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Return Energy | C$1.54 million | 0.59 | C$-208,848.00 | C($0.01) | -4.38 |
| Gibson Energy | C$4.94 billion | 0.66 | C$119.37 million | C$0.82 | 27.12 |
Gibson Energy has higher revenue and earnings than Return Energy. Return Energy is trading at a lower price-to-earnings ratio than Gibson Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Return Energy and Gibson Energy's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Return Energy | N/A | N/A | N/A |
| Gibson Energy | N/A | N/A | N/A |
Dividends
Return Energy pays an annual dividend of C$3.47 per share and has a dividend yield of 9,914.3%. Gibson Energy pays an annual dividend of C$1.36 per share and has a dividend yield of 6.1%. Return Energy pays out -43,375.0% of its earnings in the form of a dividend. Gibson Energy pays out 165.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Return Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Gibson Energy beats Return Energy on 7 of the 9 factors compared between the two stocks.
