Chesapeake Energy (CHK) and Whiting Petroleum (WLL) Head to Head Contrast

Chesapeake Energy (NYSE: CHK) and Whiting Petroleum (NYSE:WLL) are both mid-cap oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, institutional ownership and valuation.

Volatility & Risk

Chesapeake Energy has a beta of 2.13, suggesting that its share price is 113% more volatile than the S&P 500. Comparatively, Whiting Petroleum has a beta of 3.4, suggesting that its share price is 240% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Chesapeake Energy 2.77% -19.93% 4.34%
Whiting Petroleum -45.39% -5.06% -2.71%

Institutional and Insider Ownership

64.0% of Chesapeake Energy shares are owned by institutional investors. 1.1% of Chesapeake Energy shares are owned by insiders. Comparatively, 1.2% of Whiting Petroleum shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for Chesapeake Energy and Whiting Petroleum, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chesapeake Energy 5 11 5 0 2.00
Whiting Petroleum 5 12 9 0 2.15

Chesapeake Energy currently has a consensus target price of $5.48, suggesting a potential upside of 55.98%. Whiting Petroleum has a consensus target price of $33.15, suggesting a potential upside of 48.44%. Given Chesapeake Energy’s higher probable upside, analysts clearly believe Chesapeake Energy is more favorable than Whiting Petroleum.

Valuation and Earnings

This table compares Chesapeake Energy and Whiting Petroleum’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chesapeake Energy $7.87 billion 0.41 -$4.40 billion ($0.34) -10.32
Whiting Petroleum $1.28 billion 1.58 -$1.34 billion ($7.20) -3.10

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

Summary

Whiting Petroleum beats Chesapeake Energy on 7 of the 13 factors compared between the two stocks.

Chesapeake Energy Company Profile

Chesapeake Energy Corporation produces natural gas, oil and natural gas liquids (NGL) in the United States. It operates in two segments: Exploration and Production, and Marketing, Gathering and Compression. Exploration and production is engaged in finding and producing oil, natural gas and NGL. Marketing, gathering and compression is engaged in marketing, gathering and compression of oil, natural gas and NGL. As of December 31, 2016, it owned interests in approximately 22,700 oil and natural gas wells. It has a diverse resource base of onshore the United States unconventional natural gas and liquids assets. It has positions in resource plays of the Eagle Ford Shale in South Texas, the Utica Shale in Ohio, the Anadarko Basin in northwestern Oklahoma and the stacked pay in the Powder River Basin in Wyoming. Its natural gas resource plays are the Haynesville/Bossier Shales in northwestern Louisiana and East Texas and the Marcellus Shale in the northern Appalachian Basin in Pennsylvania.

Whiting Petroleum Company Profile

Whiting Petroleum Corporation is an independent oil and gas company. The Company is engaged in development, production, acquisition and exploration activities primarily in the Rocky Mountains region of the United States. It is engaged in the exploration and production of crude oil, natural gas liquid (NGLs) and natural gas. Its Northern Rocky Mountains operations included properties in the Williston Basin of North Dakota and Montana targeting the Bakken and Three Forks formations and encompassing approximately 736,000 gross developed and undeveloped acres, as of December 31, 2016. Its Central Rocky Mountains operations included properties at its Redtail field in the Denver Julesburg Basin in Weld County, Colorado targeting the Niobrara and Codell/Fort Hays formations and encompassing approximately 157,200 gross developed and undeveloped acres, as of December 31, 2016. Its other operations primarily relate to non-core assets in Colorado, Mississippi, North Dakota, Texas and Wyoming.

Receive News & Ratings for Chesapeake Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Chesapeake Energy and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply