Critical Survey: Crescent Point Energy (CPG) versus Penn Virginia (PVAHQ)

Penn Virginia (OTCMKTS: PVAHQ) and Crescent Point Energy (NYSE:CPG) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Dividends

Crescent Point Energy pays an annual dividend of $0.29 per share and has a dividend yield of 4.0%. Penn Virginia does not pay a dividend. Crescent Point Energy pays out -33.0% of its earnings in the form of a dividend.

Profitability

This table compares Penn Virginia and Crescent Point Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Penn Virginia -171.02% N/A -56.59%
Crescent Point Energy -18.68% 2.45% 1.44%

Institutional and Insider Ownership

39.9% of Crescent Point 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.

Earnings and Valuation

This table compares Penn Virginia and Crescent Point Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Penn Virginia N/A N/A N/A ($20.07) N/A
Crescent Point Energy $1.92 billion 2.08 -$704.37 million ($0.88) -8.32

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Penn Virginia and Crescent Point Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Penn Virginia 0 1 0 0 2.00
Crescent Point Energy 0 3 2 0 2.40

Penn Virginia presently has a consensus target price of $49.00, suggesting a potential upside of Infinity. Crescent Point Energy has a consensus target price of $15.75, suggesting a potential upside of 115.16%. Given Penn Virginia’s higher probable upside, research analysts plainly believe Penn Virginia is more favorable than Crescent Point Energy.

Summary

Crescent Point Energy beats Penn Virginia on 10 of the 12 factors compared between the two stocks.

About Penn Virginia

Penn Virginia Corporation is an independent oil and gas company. The Company is engaged in the onshore exploration, development and production of crude oil, natural gas liquids (NGLs) and natural gas. Its operations consist primarily of drilling unconventional horizontal development wells, and operating its producing wells in the Eagle Ford Shale field or the Eagle Ford, in South Texas. It also has operations in Oklahoma, primarily in the Granite Wash. Its primary oil and gas assets are located in Gonzales and Lavaca Counties in South Texas, and Washita and Custer Counties in Western Oklahoma. As of March 10, 2017, the Company had a contiguous position of approximately 54,000 net acres in the core liquids-rich area or volatile oil window of the Eagle Ford in Gonzales and Lavaca Counties in Texas. As of December 31, 2016, its total proved reserves were approximately 50 million barrels of oil equivalent (MMBOE), of which 53% were proved developed reserves and 74% were crude oil.

About Crescent Point Energy

Crescent Point Energy Corp. acquires, explores, develops, and produces light and medium oil and natural gas properties in Western Canada and the United States. The company's crude oil and natural gas properties, and related assets are located in the provinces of Saskatchewan, Alberta, British Columbia, and Manitoba; and the states of North Dakota, Montana, Colorado, and Utah. Crescent Point Energy Corp. is headquartered in Calgary, Canada.

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