ENI (E) & Continental Resources (CLR) Financial Contrast

ENI (NYSE: E) and Continental Resources (NYSE:CLR) are both large-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.

Profitability

This table compares ENI and Continental Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ENI 4.93% 5.63% 2.33%
Continental Resources 28.60% 9.23% 3.11%



Volatility and Risk

ENI has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Continental Resources has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for ENI and Continental Resources, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ENI 0 4 6 0 2.60
Continental Resources 0 10 19 0 2.66

ENI presently has a consensus target price of $25.12, suggesting a potential downside of 29.81%. Continental Resources has a consensus target price of $62.44, suggesting a potential downside of 1.31%. Given Continental Resources’ stronger consensus rating and higher probable upside, analysts plainly believe Continental Resources is more favorable than ENI.

Dividends

ENI pays an annual dividend of $1.35 per share and has a dividend yield of 3.8%. Continental Resources does not pay a dividend. ENI pays out 89.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

1.8% of ENI shares are owned by institutional investors. Comparatively, 22.4% of Continental Resources shares are owned by institutional investors. 76.8% of Continental Resources 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.

Valuation & Earnings

This table compares ENI and Continental Resources’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ENI $80.18 billion 0.81 $3.81 billion $1.51 23.70
Continental Resources $3.12 billion 7.62 $789.44 million $0.51 124.06

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

Summary

Continental Resources beats ENI on 12 of the 16 factors compared between the two stocks.

ENI Company Profile

Eni S.p.A. engages in the oil and gas, electricity generation and sale, and petrochemicals businesses. The company is involved in the oil and natural gas exploration, and field development and production activities, as well as liquefied natural gas (LNG) operations in 46 countries, including Italy, Libya, Egypt, Norway, the United Kingdom, Angola, Congo, Nigeria, the United States, Kazakhstan, Algeria, Australia, Venezuela, Iraq, Indonesia, Ghana, and Mozambique. It also supplies, trades in, and markets gas and electricity; transports international gas; supplies crude oil; and refines and markets petroleum products at retail and wholesale markets primarily in Italy and rest of Europe. In addition, the company engages in the commodity risk management and asset-backed trading activities; and production of various chemicals, including olefins and aromatics, basic intermediate products, polystyrenes, elastomers, and polyethylene in Italy and Western Europe. Further, it is involved in commodity trading and derivatives. Eni S.p.A. was founded in 1953 and is headquartered in Rome, Italy.

Continental Resources Company Profile

Continental Resources, Inc. explores for, develops, and produces crude oil and natural gas properties in the north, south, and east regions of the United States. The company sells its crude oil and natural gas production to energy marketing companies, crude oil refining companies, and natural gas gathering and processing companies. As of December 31, 2016, its estimated proved reserves were 1,331 million barrels of crude oil equivalent (MMBoe) with estimated proved developed reserves of 602 MMBoe. Continental Resources, Inc. was founded in 1967 and is based in Oklahoma City, Oklahoma.

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