Analyzing CNOOC (NYSE:CEO) and TransGlobe Energy (TGA)

TransGlobe Energy (NASDAQ: TGA) and CNOOC (NYSE:CEO) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.

Volatility and Risk

TransGlobe Energy has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, CNOOC has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Dividends

CNOOC pays an annual dividend of $4.92 per share and has a dividend yield of 3.4%. TransGlobe Energy does not pay a dividend.

Institutional and Insider Ownership

17.4% of TransGlobe Energy shares are held by institutional investors. Comparatively, 1.7% of CNOOC shares are held by institutional investors. 4.0% of TransGlobe Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares TransGlobe Energy and CNOOC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TransGlobe Energy -83.42% -7.08% -4.70%
CNOOC N/A N/A N/A

Valuation & Earnings

This table compares TransGlobe Energy and CNOOC’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TransGlobe Energy $122.36 million 0.78 -$87.66 million ($1.54) -0.86
CNOOC $22.06 billion 2.89 $92.00 million N/A N/A

CNOOC has higher revenue and earnings than TransGlobe Energy.

Analyst Recommendations

This is a breakdown of current ratings and price targets for TransGlobe Energy and CNOOC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TransGlobe Energy 0 1 0 0 2.00
CNOOC 0 1 5 1 3.00

CNOOC has a consensus price target of $72.32, suggesting a potential downside of 49.39%. Given CNOOC’s stronger consensus rating and higher possible upside, analysts clearly believe CNOOC is more favorable than TransGlobe Energy.

Summary

CNOOC beats TransGlobe Energy on 12 of the 14 factors compared between the two stocks.

TransGlobe Energy Company Profile

TransGlobe Energy Corporation is an oil exploration and production company. The Company’s activities are concentrated in the Arab Republic of Egypt (Egypt). The Company conducts its operations through the Arab Republic of Egypt segment. The Company is primarily engaged in oil exploration, development, production and the acquisition of properties. It holds interests in various production sharing concessions (PSC) in Eastern Desert Egypt and Western Desert Egypt. Its blocks in Eastern Desert Egypt include West Gharib, which covers approximately 34,860 acres; West Bakr, covering over 11,600 acres; North West (NW) Gharib, covering approximately 162,000 acres; South East (SE) Gharib, which covers over 125,650 acres, and South West (SW) Gharib, covering approximately 48,310 acres. Its blocks in the Western Desert Egypt include South Alamein, covering approximately 335,830 acres; South Ghazalat, covering over 465,300 acres, and North West (NW) Sitra, covering approximately 480,850 acres.

CNOOC Company Profile

CNOOC Limited is a Hong Kong-based investment holding company principally engaged in the exploration, production and trading of oil and gas. Its businesses include conventional oil and gas businesses, shale oil and gas businesses, oil sands businesses and other unconventional oil and gas businesses. The Company mainly operates businesses through three segments. The Exploration and Production segment is engaged in the exploration, development and production of crude oil, natural gas and other petroleum products. The Trading segment is engaged in the trading of crude oil, natural gas and other petroleum products. The Corporate segment is engaged in corporate-related businesses. The Company mainly operates businesses in China, Canada, the United Kingdom, Nigeria, Indonesia and Brazil, among others.

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