Cenovus Energy (NYSE: CVE) and Centennial Res (NASDAQ:CDEV) are both mid-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

Volatility & Risk

Cenovus Energy has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Centennial Res has a beta of 2.07, meaning that its stock price is 107% more volatile than the S&P 500.

Dividends

Cenovus Energy pays an annual dividend of $0.16 per share and has a dividend yield of 1.7%. Centennial Res does not pay a dividend. Cenovus Energy pays out 8.9% of its earnings in the form of a dividend.

Profitability

This table compares Cenovus Energy and Centennial Res’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cenovus Energy 17.89% 3.20% 1.46%
Centennial Res N/A -8.27% -7.48%

Valuation & Earnings

This table compares Cenovus Energy and Centennial Res’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cenovus Energy $12.32 billion 0.94 $1.83 billion $1.80 5.26
Centennial Res $212.53 million 22.89 $133.00 million N/A N/A

Cenovus Energy has higher revenue and earnings than Centennial Res.

Insider and Institutional Ownership

54.8% of Cenovus Energy shares are held by institutional investors. Comparatively, 90.6% of Centennial Res shares are held by institutional investors. 44.7% of Centennial Res shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Cenovus Energy and Centennial Res, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cenovus Energy 2 3 8 0 2.46
Centennial Res 0 2 13 0 2.87

Cenovus Energy presently has a consensus target price of $16.79, suggesting a potential upside of 77.25%. Centennial Res has a consensus target price of $22.69, suggesting a potential upside of 19.75%. Given Cenovus Energy’s higher possible upside, research analysts clearly believe Cenovus Energy is more favorable than Centennial Res.

Cenovus Energy Company Profile

Cenovus Energy Inc is a Canada-based integrated oil company. It operates in the business of developing, producing and marketing crude oil, Natural Gas Liquids (NGLs) and natural gas in Canada. The Company also conducts marketing activities and owns refining interests in the United States (U.S.). Its segments include: Oil Sands, which includes the development and production of bitumen and natural gas in northeast Alberta; Conventional, which includes the development and production of conventional crude oil, NGLs and natural gas in Alberta and Saskatchewan, including the heavy oil assets at Pelican Lake, the carbon dioxide (CO2) enhanced oil recovery (EOR) project at Weyburn and emerging tight oil opportunities; Refining and Marketing, which includes transporting and selling crude oil and natural gas and joint ownership of refineries in the U.S., as well as Corporate and Eliminations.

Centennial Res Company Profile

Centennial Resource Development, Inc. is an independent oil and natural gas company. The Company is focused on the development of unconventional oil and associated liquids-rich natural gas reserves in the Permian Basin. The Company’s assets are concentrated in the Delaware Basin, a sub-basin of the Permian Basin. Its properties consist of large, contiguous acreage blocks in Reeves, Ward and Pecos counties in West Texas. As of December 31, 2016, the Company held approximately 92% membership interest in Centennial Resource Production, LLC (CRP). As of December 31, 2016, its portfolio included 106 operated producing horizontal wells. The horizontal wells span an area of approximately 45 miles long by 20 miles wide where it had commercial production in five zones: the 3rd Bone Spring Sandstone, Upper Wolfcamp A, Lower Wolfcamp A, Wolfcamp B and Wolfcamp C.

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