Financial Analysis: CNX Resources (CNX) vs. Energen (EGN)

CNX Resources (NYSE: CNX) and Energen (NYSE:EGN) are both mid-cap oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Dividends

CNX Resources pays an annual dividend of $0.13 per share and has a dividend yield of 0.7%. Energen does not pay a dividend. CNX Resources pays out -81.3% of its earnings in the form of a dividend.

Profitability

This table compares CNX Resources and Energen’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CNX Resources 37.74% 1.36% 0.70%
Energen 34.60% 4.95% 3.33%

Insider & Institutional Ownership

96.0% of CNX Resources shares are owned by institutional investors. Comparatively, 93.3% of Energen shares are owned by institutional investors. 2.0% of CNX Resources shares are owned by company insiders. Comparatively, 1.1% of Energen shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares CNX Resources and Energen’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CNX Resources $1.46 billion 2.62 $380.74 million ($0.16) -109.44
Energen $961.04 million 7.35 $306.82 million $0.75 96.69

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

Risk & Volatility

CNX Resources has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Energen has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for CNX Resources and Energen, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CNX Resources 0 4 6 0 2.60
Energen 1 6 14 0 2.62

CNX Resources presently has a consensus price target of $21.89, suggesting a potential upside of 25.01%. Energen has a consensus price target of $71.95, suggesting a potential downside of 0.79%. Given CNX Resources’ higher possible upside, equities research analysts plainly believe CNX Resources is more favorable than Energen.

CNX Resources Company Profile

CNX Resources Corporation, an independent oil and natural gas company, explores for, develops, and produces natural gas in the Appalachian Basin. As of December 31, 2017, it had 7.6 trillion cubic feet equivalent of proved natural gas reserves. The company also owns, operates, and develops natural gas gathering and other midstream energy assets in the Marcellus Shale in Pennsylvania and West Virginia. In addition, it offers gas gathering and water delivery solutions, as well as land services to third-parties. The company was formerly known as CONSOL Energy Inc. and changed its name to CNX Resources Corporation in November 2017. CNX Resources Corporation was incorporated in 1991 and is headquartered in Canonsburg, Pennsylvania.

Energen Company Profile

Energen Corporation, through its subsidiary, Energen Resources Corporation, engages in the exploration, development, and production of oil, natural gas liquids, and natural gas. The company has operations within the Midland Basin, the Delaware Basin, and the Central Basin Platform areas of the Permian Basin in west Texas and New Mexico. As of December 31, 2017, it had a total proved reserves of 444 million barrel of oil equivalent. The company was founded in 1929 and is headquartered in Birmingham, Alabama.

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