Contrasting MV Oil Trust (NYSE:MVO) & Chesapeake Energy Corporation (CHK)
MV Oil Trust (NYSE: MVO) and Chesapeake Energy Corporation (NYSE:CHK) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, profitabiliy, institutional ownership, earnings and analyst recommendations.
This is a summary of recent recommendations and price targets for MV Oil Trust and Chesapeake Energy Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MV Oil Trust||0||0||0||0||N/A|
|Chesapeake Energy Corporation||3||18||6||0||2.11|
Chesapeake Energy Corporation has a consensus price target of $6.76, suggesting a potential upside of 45.02%. Given Chesapeake Energy Corporation’s higher possible upside, analysts clearly believe Chesapeake Energy Corporation is more favorable than MV Oil Trust.
MV Oil Trust pays an annual dividend of $0.90 per share and has a dividend yield of 17.2%. Chesapeake Energy Corporation does not pay a dividend. MV Oil Trust pays out 214.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares MV Oil Trust and Chesapeake Energy Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MV Oil Trust||84.71%||N/A||24.24%|
|Chesapeake Energy Corporation||-35.84%||-7.64%||1.90%|
Earnings and Valuation
This table compares MV Oil Trust and Chesapeake Energy Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|MV Oil Trust||$5.70 million||10.53||$4.83 million||$0.42||12.43|
|Chesapeake Energy Corporation||$8.59 billion||0.48||$502.00 million||($4.78)||-0.97|
Chesapeake Energy Corporation has higher revenue and earnings than MV Oil Trust. Chesapeake Energy Corporation is trading at a lower price-to-earnings ratio than MV Oil Trust, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
10.5% of MV Oil Trust shares are held by institutional investors. Comparatively, 64.9% of Chesapeake Energy Corporation shares are held by institutional investors. 1.1% of Chesapeake Energy Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
MV Oil Trust has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500. Comparatively, Chesapeake Energy Corporation has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500.
Chesapeake Energy Corporation beats MV Oil Trust on 9 of the 15 factors compared between the two stocks.
About MV Oil Trust
MV Oil Trust (the Trust) is a statutory trust. The Trust acquires and holds a term net profits interest for the benefit of the Trust unitholders. Its underlying properties consist of MV Partners, LLC’s (MV Partners) net interests in all of its oil and natural gas properties, which are located in the Mid-Continent region in the States of Kansas and Colorado. These oil and gas properties include approximately 1,000 producing oil and gas wells. The underlying properties located in the El Dorado Area are operated on behalf of MV Partners by Vess Oil Corporation (Vess Oil) and are located in the El Dorado, Augusta and Valley Center Fields. Each of Vess Oil and Murfin Drilling Company, Inc. (Murfin Drilling) operate leases on behalf of MV Partners included in the underlying properties that are located in the Northwest Kansas Area. The primary fields in this area are the Bemis-Shutts, Trapp, Ray and Hansen Fields.
About Chesapeake Energy Corporation
Chesapeake Energy Corporation produces natural gas, oil and natural gas liquids (NGL) in the United States. It operates in two segments: Exploration and Production, and Marketing, Gathering and Compression. Exploration and production is engaged in finding and producing oil, natural gas and NGL. Marketing, gathering and compression is engaged in marketing, gathering and compression of oil, natural gas and NGL. As of December 31, 2016, it owned interests in approximately 22,700 oil and natural gas wells. It has a diverse resource base of onshore the United States unconventional natural gas and liquids assets. It has positions in resource plays of the Eagle Ford Shale in South Texas, the Utica Shale in Ohio, the Anadarko Basin in northwestern Oklahoma and the stacked pay in the Powder River Basin in Wyoming. Its natural gas resource plays are the Haynesville/Bossier Shales in northwestern Louisiana and East Texas and the Marcellus Shale in the northern Appalachian Basin in Pennsylvania.
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