Chesapeake Granite Wash Trust (NYSE: CHKR) and Pengrowth Energy Corporation (NYSE:PGH) are both small-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.

Analyst Ratings

This is a summary of current ratings and target prices for Chesapeake Granite Wash Trust and Pengrowth Energy Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chesapeake Granite Wash Trust 0 0 0 0 N/A
Pengrowth Energy Corporation 6 2 0 0 1.25

Pengrowth Energy Corporation has a consensus price target of $1.99, indicating a potential upside of 99.56%. Given Pengrowth Energy Corporation’s higher probable upside, analysts clearly believe Pengrowth Energy Corporation is more favorable than Chesapeake Granite Wash Trust.

Profitability

This table compares Chesapeake Granite Wash Trust and Pengrowth Energy Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chesapeake Granite Wash Trust 85.99% 39.29% 39.29%
Pengrowth Energy Corporation -76.93% -22.19% -8.39%

Insider & Institutional Ownership

1.1% of Chesapeake Granite Wash Trust shares are held by institutional investors. Comparatively, 16.6% of Pengrowth Energy Corporation shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Chesapeake Granite Wash Trust pays an annual dividend of $0.38 per share and has a dividend yield of 17.9%. Pengrowth Energy Corporation does not pay a dividend. Chesapeake Granite Wash Trust pays out 108.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares Chesapeake Granite Wash Trust and Pengrowth Energy Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Chesapeake Granite Wash Trust $13.72 million 7.24 $16.36 million $0.35 6.07
Pengrowth Energy Corporation $471.16 million 1.17 $501.02 million ($0.66) -1.51

Pengrowth Energy Corporation has higher revenue and earnings than Chesapeake Granite Wash Trust. Pengrowth Energy Corporation is trading at a lower price-to-earnings ratio than Chesapeake Granite Wash Trust, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Chesapeake Granite Wash Trust has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Pengrowth Energy Corporation has a beta of 2.47, suggesting that its stock price is 147% more volatile than the S&P 500.

Chesapeake Granite Wash Trust Company Profile

Chesapeake Granite Wash Trust (the Trust) is a trust formed to own royalty interests for the benefit of Trust unit holders. The royalty interests held by the Trust (Royalty Interests) are derived from Chesapeake Energy Corporation’s (Chesapeake) interests in specified oil and natural gas properties located in the Colony Granite Wash play in Washita County. Chesapeake conveyed the Royalty Interests to the Trust from its interests in approximately 70 existing horizontal wells (Producing Wells) and Chesapeake’s interests in over 120 horizontal development wells (Development Wells) to be drilled on properties within the Area of Mutual Interest (AMI). The AMI lies within Washita County in western Oklahoma and is limited to Colony Granite Wash formation, where Chesapeake holds approximately 40,500 gross acres. Chesapeake has drilled and completed over 90 wells within the AMI. The Colony Granite Wash is located at the eastern end of Des Moines-age granite wash fields.

Pengrowth Energy Corporation Company Profile

Pengrowth Energy Corporation is engaged in the development, production and acquisition of, and the exploration for, oil and natural gas reserves in the provinces of Alberta, British Columbia, Saskatchewan and Nova Scotia. The Lindbergh thermal property is located approximately 420 kilometers north east of Calgary, Alberta and 50 kilometers south of Bonnyville, Alberta. Its Greater Olds/Garrington area is located approximately 100 kilometers north of Calgary, Alberta. It has varied Working Interests within the Swan Hills area in all of the properties throughout this regional Beaverhill Lake resource base. These are both operated and non-operated, unit and non-unit properties in Judy Creek, Carson Creek, House Mountain, Deer Mountain, Swan Hills, South Swan Hills and Freeman. The properties are located approximately 200 kilometers northwest of Edmonton, Alberta. Its Groundbirch property is located approximately 40 kilometers south west of Fort St. John, British Columbia.

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