Contrasting Cenovus Energy (CVE) & VOC Energy Trust (VOC)

VOC Energy Trust (NYSE: VOC) and Cenovus Energy (NYSE:CVE) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
VOC Energy Trust $5.75 million 17.41 $4.84 million $0.50 11.78
Cenovus Energy $9.09 billion 1.48 -$411.58 million $2.28 4.80

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

Insider & Institutional Ownership

8.3% of VOC Energy Trust shares are held by institutional investors. Comparatively, 56.8% of Cenovus Energy shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and target prices for VOC Energy Trust and Cenovus Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
VOC Energy Trust 0 0 0 0 N/A
Cenovus Energy 2 4 7 0 2.38

Cenovus Energy has a consensus price target of $15.10, suggesting a potential upside of 38.03%. Given Cenovus Energy’s higher possible upside, analysts plainly believe Cenovus Energy is more favorable than VOC Energy Trust.

Risk and Volatility

VOC Energy Trust has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Cenovus Energy has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
VOC Energy Trust 89.92% 10.29% 10.29%
Cenovus Energy 17.45% 6.19% 2.81%

Dividends

VOC Energy Trust pays an annual dividend of $0.38 per share and has a dividend yield of 6.5%. Cenovus Energy pays an annual dividend of $0.16 per share and has a dividend yield of 1.5%. VOC Energy Trust pays out 76.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cenovus Energy pays out 7.0% of its earnings in the form of a dividend.

Summary

VOC Energy Trust beats Cenovus Energy on 8 of the 14 factors compared between the two stocks.

VOC Energy Trust Company Profile

VOC Energy Trust is a statutory trust formed by VOC Brazos Energy Partners, L.P. (VOC Brazos). The business and affairs of the Company are managed by The Bank of New York Mellon Trust Company, N.A., as trustee. The Company was created to acquire and hold the net profits interest for the benefit of its unitholders. VOC Brazos’ properties include interests in approximately 820 gross producing wells covering over 91,490 gross acres. VOC Brazos’ properties are developed properties located in oil and natural gas producing regions of Kansas and Texas. VOC Brazos’ fields in the Central Kansas Uplift include Fairport Field, Chase-Silica Field and Marcotte Field. VOC Brazos’ fields in Western Kansas include the Bindley, Moore-Johnson and Wesley fields. VOC Brazos’ fields in South Central Kansas include the Gerberding, Spivey Grabs and Alford fields. VOC Brazos’ proved reserved in Texas are located in the Central Texas and East Texas areas.

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.

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