Critical Contrast: FEC Resources (OTCMKTS:FECOF) versus Canadian Natural Resources (NYSE:CNQ)

Canadian Natural Resources (NYSE:CNQ) and FEC Resources (OTCMKTS:FECOF) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Earnings & Valuation

This table compares Canadian Natural Resources and FEC Resources”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canadian Natural Resources	$30.30 billion	2.22	$4.46 billion	$2.55	12.60
FEC Resources	N/A	N/A	-$190,000.00	N/A	N/A

Canadian Natural Resources has higher revenue and earnings than FEC Resources.

Analyst Ratings

This is a summary of recent recommendations and price targets for Canadian Natural Resources and FEC Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Natural Resources	0	2	4	0	2.67
FEC Resources	0	0	0	0	0.00

Canadian Natural Resources presently has a consensus target price of $63.00, suggesting a potential upside of 96.08%. Given Canadian Natural Resources’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Canadian Natural Resources is more favorable than FEC Resources.

Profitability

This table compares Canadian Natural Resources and FEC Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian Natural Resources	16.92%	20.90%	10.37%
FEC Resources	N/A	131.17%	114.19%

Institutional and Insider Ownership

74.0% of Canadian Natural Resources shares are held by institutional investors. Comparatively, 0.0% of FEC Resources shares are held by institutional investors. 5.0% of Canadian Natural Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Canadian Natural Resources has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, FEC Resources has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.

Summary

Canadian Natural Resources beats FEC Resources on 8 of the 11 factors compared between the two stocks.

About Canadian Natural Resources

Canadian Natural Resources Limited acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs). The company offers light and medium crude oil, primary heavy crude oil, Pelican Lake heavy crude oil, bitumen (thermal oil), and synthetic crude oil (SCO). The company’s midstream assets include two pipeline systems; and a 50% working interest in an 84-megawatt cogeneration plant at Primrose. It operates primarily in Western Canada; the United Kingdom portion of the North Sea; and Offshore Africa. The company was formerly known as AEX Minerals Corporation and changed its name to Canadian Natural Resources Limited in December 1975. Canadian Natural Resources Limited was incorporated in 1973 and is headquartered in Calgary, Canada.

About FEC Resources

FEC Resources Inc. engages in the exploration and development of oil and gas properties in the Philippines. The company, through its 6.8% interest in Forum Energy Limited, primarily owns a 70% interest in the GSEC101 offshore license covering an area of approximately 10,360 square kilometers located to the northwest of the Philippine Island of Palawan. FEC Resources Inc. is headquartered in Vancouver, Canada. FEC Resources Inc. operates as a subsidiary of PXP Energy Corporation.