Reviewing Cenovus Energy (NYSE:CVE) & Chord Energy (NASDAQ:CHRD)

Cenovus Energy (NYSE:CVEGet Free Report) and Chord Energy (NASDAQ:CHRDGet Free Report) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Profitability

This table compares Cenovus Energy and Chord Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cenovus Energy 7.82% 15.01% 7.54%
Chord Energy 27.86% 16.74% 12.03%

Institutional & Insider Ownership

50.0% of Cenovus Energy shares are owned by institutional investors. Comparatively, 97.8% of Chord Energy shares are owned by institutional investors. 0.5% of Chord Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Cenovus Energy and Chord Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cenovus Energy 0 1 3 0 2.75
Chord Energy 1 1 7 0 2.67

Cenovus Energy presently has a consensus price target of $18.67, indicating a potential upside of 12.72%. Chord Energy has a consensus price target of $185.10, indicating a potential upside of 16.39%. Given Chord Energy’s higher possible upside, analysts clearly believe Chord Energy is more favorable than Cenovus Energy.

Risk and Volatility

Cenovus Energy has a beta of 2.16, meaning that its share price is 116% more volatile than the S&P 500. Comparatively, Chord Energy has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

Valuation and Earnings

This table compares Cenovus Energy and Chord Energy’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cenovus Energy $51.46 billion 0.60 $4.96 billion $1.58 10.48
Chord Energy $3.65 billion 1.80 $1.86 billion $25.24 6.30

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

Dividends

Cenovus Energy pays an annual dividend of $0.41 per share and has a dividend yield of 2.5%. Chord Energy pays an annual dividend of $5.00 per share and has a dividend yield of 3.1%. Cenovus Energy pays out 25.9% of its earnings in the form of a dividend. Chord Energy pays out 19.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Chord Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Chord Energy beats Cenovus Energy on 11 of the 16 factors compared between the two stocks.

About Cenovus Energy

(Get Free Report)

Cenovus Energy Inc., together with its subsidiaries, develops, produces, refines, transports, and markets crude oil and natural gas in Canada and internationally. The company operates through Oil Sands, Conventional, Offshore, Canadian Manufacturing, and U.S. Manufacturing segments. The Oil Sands segment develops and produces bitumen and heavy oil in northern Alberta and Saskatchewan. This segment assets include Foster Creek, Christina Lake, and Sunrise projects, as well as Lloydminster thermal and conventional heavy oil assets. The Conventional segment holds natural gas liquids and natural gas assets primarily located in Elmworth-Wapiti, Kaybob-Edson, Clearwater, and Rainbow Lake operating in Alberta and British Columbia, as well as interests in various natural gas processing facilities. The offshore segment engages in offshore operation, exploration, and development activities in China and the East Coast of Canada. The Canadian Manufacturing segment comprises the owned and operated Lloydminster upgrading and asphalt refining complex, which converts heavy oil and bitumen into synthetic crude oil, diesel, asphalt, and other ancillary products, as well as owns and operates the Bruderheim crude-by-rail terminal and ethanol plants; and markets its production of its own and third-party products. The U.S. Manufacturing segment includes the refining of crude oil to produce gasoline, diesel, jet fuel, asphalt, and other products. Cenovus Energy Inc. was founded in 2009 and is headquartered in Calgary, Canada.

About Chord Energy

(Get Free Report)

Chord Energy Corporation operates as an independent exploration and production company. It acquires, exploits, develops, and explores for crude oil, natural gas, and natural gas liquids in the Williston Basin. Chord Energy Corporation was founded in 2007 and is headquartered in Houston, Texas.

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