Southwestern Energy (NYSE:SWN – Get Rating) and Canadian Natural Resources (NYSE:CNQ – Get Rating) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.
Insider and Institutional Ownership
85.8% of Southwestern Energy shares are owned by institutional investors. Comparatively, 68.5% of Canadian Natural Resources shares are owned by institutional investors. 0.6% of Southwestern Energy shares are owned by insiders. Comparatively, 5.0% of Canadian Natural Resources shares are owned by 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.
This table compares Southwestern Energy and Canadian Natural Resources’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Southwestern Energy||$6.67 billion||1.13||-$25.00 million||($3.35)||-2.01|
|Canadian Natural Resources||$26.21 billion||2.31||$6.12 billion||$6.33||8.29|
Canadian Natural Resources has higher revenue and earnings than Southwestern Energy. Southwestern Energy is trading at a lower price-to-earnings ratio than Canadian Natural Resources, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Southwestern Energy has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, Canadian Natural Resources has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500.
This table compares Southwestern Energy and Canadian Natural Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Canadian Natural Resources||24.71%||26.32%||12.52%|
This is a breakdown of current recommendations and price targets for Southwestern Energy and Canadian Natural Resources, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Canadian Natural Resources||0||6||8||0||2.57|
Southwestern Energy presently has a consensus target price of $9.00, indicating a potential upside of 33.87%. Canadian Natural Resources has a consensus target price of $79.69, indicating a potential upside of 51.87%. Given Canadian Natural Resources’ stronger consensus rating and higher probable upside, analysts plainly believe Canadian Natural Resources is more favorable than Southwestern Energy.
Canadian Natural Resources beats Southwestern Energy on 11 of the 13 factors compared between the two stocks.
About Southwestern Energy (Get Rating)
Southwestern Energy Company, an independent energy company, engages in the exploration, development, and production of natural gas, oil, and natural gas liquids (NGLs) in the United States. It operates through two segments, Exploration and Production, and Marketing. The company focuses on the development of unconventional natural gas and oil reservoirs located in Pennsylvania, West Virginia, Ohio, and Louisiana. As of December 31, 2021, it had approximately 768,050 net acres in Appalachia; a total of 1,527 wells on production; and approximately proved natural gas, oil, and NGLs reserves comprise 21,148 billion cubic feet of natural gas equivalent (Bcfe). It also engages in the marketing and transportation of natural gas, oil, and NGLs. The company serves LNG exporters, energy companies, utilities, and industrial purchasers of natural gas. Southwestern Energy Company was incorporated in 1929 and is headquartered in Spring, Texas.
About Canadian Natural Resources (Get Rating)
Canadian Natural Resources Limited acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs). The company offers synthetic crude oil (SCO), light and medium crude oil, bitumen (thermal oil), primary heavy crude oil, and Pelican Lake heavy crude oil. Its midstream and refining assets include two crude oil pipeline systems; and a 50% working interest in an 84-megawatt cogeneration plant at Primrose. As of December 31, 2020, the company had total proved crude oil, bitumen, and NGLs reserves were 10,528 million barrels (MMbbl); total proved plus probable crude oil, bitumen, and NGLs reserves were 13,271 MMbbl; proved SCO reserves were 6,998 MMbbl; total proved plus probable SCO reserves were 7,535 MMbbl; proved natural gas reserves were 12,168 billion cubic feet (Bcf); and total proved plus probable natural gas reserves were 20,249 Bcf. 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.
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