Critical Contrast: Obsidian Energy (OTCMKTS:OBELF) versus Chesapeake Energy (NASDAQ:EXE)

Chesapeake Energy (NASDAQ:EXEGet Free Report) and Obsidian Energy (OTCMKTS:OBELFGet Free Report) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Insider & Institutional Ownership

97.9% of Chesapeake Energy shares are owned by institutional investors. Comparatively, 0.0% of Obsidian Energy shares are owned by institutional investors. 58.0% of Chesapeake Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Chesapeake Energy and Obsidian Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chesapeake Energy 0 3 4 1 2.75
Obsidian Energy 0 0 0 0 0.00

Chesapeake Energy currently has a consensus price target of $101.71, indicating a potential upside of 3.00%. Given Chesapeake Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Chesapeake Energy is more favorable than Obsidian Energy.

Earnings & Valuation

This table compares Chesapeake Energy and Obsidian Energy”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chesapeake Energy $4.03 billion 5.66 $2.42 billion $1.62 60.96
Obsidian Energy $220.00 million 2.10 -$576.07 million $4.17 1.37

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

Volatility and Risk

Chesapeake Energy has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, Obsidian Energy has a beta of 2.47, suggesting that its share price is 147% more volatile than the S&P 500.

Profitability

This table compares Chesapeake Energy and Obsidian Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chesapeake Energy 6.07% 2.74% 2.08%
Obsidian Energy 99.13% 78.07% 35.32%

Summary

Chesapeake Energy beats Obsidian Energy on 10 of the 15 factors compared between the two stocks.

About Chesapeake Energy

(Get Free Report)

Expand Energy Corporation is an independent natural gas producer principally in the United States. Expand Energy Corporation, formerly known as Chesapeake Energy Corporation, is based in OKLAHOMA CITY.

About Obsidian Energy

(Get Free Report)

Obsidian Energy Ltd. is an exploration and production company. The firm engages in exploring, developing, and holds interests in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin directly and through investments in securities of subsidiaries holding such interests. Its property portfolio includes Cardium, Viking, and Peace River. The company was founded on December 27, 1979 and is headquartered in Calgary, Canada.

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