PetroChina (PTR) vs. Cenovus Energy (NYSE:CVE) Head-To-Head Analysis

Cenovus Energy (NYSE: CVE) and PetroChina (NYSE:PTR) are both large-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Cenovus Energy 17.45% 6.19% 2.81%
PetroChina 1.22% 2.08% 1.20%

Volatility & Risk

Cenovus Energy has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, PetroChina has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.

Insider and Institutional Ownership

56.8% of Cenovus Energy shares are held by institutional investors. Comparatively, 0.2% of PetroChina shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Cenovus Energy pays an annual dividend of $0.16 per share and has a dividend yield of 1.7%. PetroChina pays an annual dividend of $1.39 per share and has a dividend yield of 2.1%. Cenovus Energy pays out 8.1% of its earnings in the form of a dividend. PetroChina pays out 73.2% 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.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cenovus Energy 2 5 7 0 2.36
PetroChina 0 3 5 0 2.63

Cenovus Energy presently has a consensus target price of $16.79, suggesting a potential upside of 80.88%. Given Cenovus Energy’s higher possible upside, analysts clearly believe Cenovus Energy is more favorable than PetroChina.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cenovus Energy $9.09 billion 1.25 -$411.58 million $1.98 4.69
PetroChina $243.50 billion 0.50 $1.18 billion $1.90 34.81

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

Summary

Cenovus Energy beats PetroChina on 9 of the 15 factors compared between the two stocks.

Cenovus Energy Company Profile

Cenovus Energy Inc is a Canada-based integrated oil company. It operates in the business of developing, producing and marketing crude oil, Natural Gas Liquids (NGLs) and natural gas in Canada. The Company also conducts marketing activities and owns refining interests in the United States (U.S.). Its segments include: Oil Sands, which includes the development and production of bitumen and natural gas in northeast Alberta; Conventional, which includes the development and production of conventional crude oil, NGLs and natural gas in Alberta and Saskatchewan, including the heavy oil assets at Pelican Lake, the carbon dioxide (CO2) enhanced oil recovery (EOR) project at Weyburn and emerging tight oil opportunities; Refining and Marketing, which includes transporting and selling crude oil and natural gas and joint ownership of refineries in the U.S., as well as Corporate and Eliminations.

PetroChina Company Profile

PetroChina Company Limited is a China-based company principally engaged in the production and distribution of oil and gas. The Company mainly operates through four business segments. The Exploration and Production segment is principally engaged in the exploration, development, production and sales of crude oil and natural gas. The Refining and Chemical Products segment is principally engaged in the refining of crude oil and petroleum products, as well as the production and sales of basic petrochemical products, derivative petrochemical products and other chemical products. The Sales segment is principally engaged in the sales of refined petroleum products. The Natural Gas and Pipeline segment is engaged in the transportation and sales of natural gas, crude oil and refined petroleum products.

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