Critical Review: Crescent Point Energy (CPG) & Bellatrix Exploration (BXE)

Crescent Point Energy (NYSE:CPG) and Bellatrix Exploration (NYSE:BXE) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

39.0% of Crescent Point Energy shares are owned by institutional investors. Comparatively, 21.3% of Bellatrix Exploration shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Crescent Point Energy and Bellatrix Exploration, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Crescent Point Energy 0 2 2 0 2.50
Bellatrix Exploration 4 1 1 0 1.50

Crescent Point Energy presently has a consensus target price of $16.25, suggesting a potential upside of 208.35%. Bellatrix Exploration has a consensus target price of $2.88, suggesting a potential upside of 204.37%. Given Crescent Point Energy’s stronger consensus rating and higher possible upside, equities analysts clearly believe Crescent Point Energy is more favorable than Bellatrix Exploration.

Volatility and Risk

Crescent Point Energy has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, Bellatrix Exploration has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.

Dividends

Crescent Point Energy pays an annual dividend of $0.28 per share and has a dividend yield of 5.3%. Bellatrix Exploration does not pay a dividend. Crescent Point Energy pays out 200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

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

Net Margins Return on Equity Return on Assets
Crescent Point Energy -16.48% 1.80% 1.02%
Bellatrix Exploration -34.37% -8.97% -5.18%

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Crescent Point Energy $2.55 billion 1.14 -$95.65 million $0.14 37.64
Bellatrix Exploration $192.30 million 0.31 -$70.47 million ($1.37) -0.69

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

Summary

Crescent Point Energy beats Bellatrix Exploration on 13 of the 15 factors compared between the two stocks.

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, and Utah. Crescent Point Energy Corp. is headquartered in Calgary, Canada..

About Bellatrix Exploration

Bellatrix Exploration Ltd., an oil and gas company, engages in the acquisition, exploration, development, and production of oil and natural gas reserves in the provinces of Alberta, British Columbia, and Saskatchewan in Canada. It primarily focuses on developing its two core resource plays, the Cardium and the Spirit River in Western Canada. The company was founded in 2000 and is headquartered in Calgary, Canada.

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