Cenovus Energy (NYSE: CVE) and PetroChina (NYSE:PTR) are both large-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.
Risk and Volatility
Cenovus Energy has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, PetroChina has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.
This table compares Cenovus Energy and PetroChina’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Institutional & Insider Ownership
56.8% of Cenovus Energy shares are owned by institutional investors. Comparatively, 0.2% of PetroChina shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
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.
Earnings and Valuation
This table compares Cenovus Energy and PetroChina’s top-line revenue, earnings per share and valuation.
||Earnings Per Share
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.
This is a summary of current ratings and price targets for Cenovus Energy and PetroChina, as provided by MarketBeat.
||Strong Buy Ratings
Cenovus Energy currently has a consensus price target of $16.79, indicating a potential upside of 77.06%. Given Cenovus Energy’s higher possible upside, analysts clearly believe Cenovus Energy is more favorable than PetroChina.
Cenovus Energy beats PetroChina on 9 of the 15 factors compared between the two stocks.
About Cenovus Energy
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 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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