Contrasting Carbon Energy (OTCMKTS:CRBOD) and California Resources (NYSE:CRC)

Carbon Energy (OTCMKTS:CRBOD – Get Rating) and California Resources (NYSE:CRC – Get Rating) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, earnings, profitability, dividends, valuation and analyst recommendations.

Institutional & Insider Ownership

10.5% of Carbon Energy shares are held by institutional investors. 7.1% of Carbon Energy shares are held by company insiders. Comparatively, 0.0% of California Resources shares are held 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.

Profitability

This table compares Carbon Energy and California Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carbon Energy	-38.38%	-8.44%	-2.43%
California Resources	27.95%	26.53%	12.17%

Valuation and Earnings

This table compares Carbon Energy and California Resources’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carbon Energy	$116.63 million	0.03	$1.10 million	N/A	N/A
California Resources	$2.71 billion	1.02	$524.00 million	$13.19	2.97

California Resources has higher revenue and earnings than Carbon Energy.

Analyst Ratings

This is a summary of current recommendations and price targets for Carbon Energy and California Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carbon Energy	0	0	0	0	N/A
California Resources	0	0	7	0	3.00

California Resources has a consensus target price of $55.33, suggesting a potential upside of 41.01%. Given California Resources’ higher possible upside, analysts plainly believe California Resources is more favorable than Carbon Energy.

Volatility & Risk

Carbon Energy has a beta of 0.15, indicating that its stock price is 85% less volatile than the S&P 500. Comparatively, California Resources has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Summary

California Resources beats Carbon Energy on 9 of the 11 factors compared between the two stocks.

About Carbon Energy

(Get Rating)

Carbon Energy Corporation, an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids properties in the United States. It focuses on conventional and unconventional reservoirs, including shale, tight sand, and coalbed methane located in the Appalachian, Illinois, and Ventura Basins. As of December 31, 2018, it owned working interests in 7,100 net wells and royalty interests in approximately 900 wells located in California, Illinois, Indiana, Kentucky, Ohio, Tennessee, Virginia, and West Virginia, as well as had leasehold positions in approximately 340,700 net developed acres and approximately 1,319,200 net undeveloped acres. The company was formerly known as Carbon Natural Gas Company and changed its name to Carbon Energy Corporation in June 2018. Carbon Energy Corporation was founded in 2007 and is based in Denver, Colorado.

About California Resources

(Get Rating)

California Resources Corporation operates as an independent oil and natural gas company. The company explores for, produces, gathers, processes, and markets crude oil, natural gas, and natural gas liquids for marketers, California refineries, and other purchasers that have access to transportation and storage facilities. As of December 31, 2021, it had interests in approximately 1.9 million net mineral acres with proved reserves totaled an estimated 480 million barrels of oil equivalent. The company also engages in the generation and sale of electricity to the local utility and the grid. The company was incorporated in 2014 and is based in Santa Clarita, California.