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

Earnings and Valuation

This table compares Chesapeake Energy and Bellatrix Exploration’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chesapeake Energy $7.87 billion 0.46 -$4.40 billion ($0.34) -11.62
Bellatrix Exploration $172.08 million 0.52 -$20.13 million ($0.85) -2.12

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

Profitability

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

Net Margins Return on Equity Return on Assets
Chesapeake Energy 2.77% -19.93% 4.34%
Bellatrix Exploration -21.02% -1.66% -0.98%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Chesapeake Energy and Bellatrix Exploration, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chesapeake Energy 4 12 5 0 2.05
Bellatrix Exploration 0 5 1 0 2.17

Chesapeake Energy presently has a consensus target price of $5.76, indicating a potential upside of 45.87%. Bellatrix Exploration has a consensus target price of $4.88, indicating a potential upside of 170.83%. Given Bellatrix Exploration’s stronger consensus rating and higher possible upside, analysts plainly believe Bellatrix Exploration is more favorable than Chesapeake Energy.

Institutional & Insider Ownership

64.0% of Chesapeake Energy shares are held by institutional investors. Comparatively, 40.2% of Bellatrix Exploration shares are held by institutional investors. 1.1% of Chesapeake Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Chesapeake Energy has a beta of 2.13, suggesting that its share price is 113% more volatile than the S&P 500. Comparatively, Bellatrix Exploration has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.

Summary

Chesapeake Energy beats Bellatrix Exploration on 8 of the 13 factors compared between the two stocks.

About Chesapeake Energy

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.

About Bellatrix Exploration

Bellatrix Exploration Ltd. is an oil and gas exploration company engaged in the exploration for, and the acquisition, development and production of oil and natural gas reserves in the provinces of Alberta, British Columbia and Saskatchewan. The Company’s properties include Ferrier, Willesden Green, Greater Pembina, Strachan and Harmattan. Ferrier is located over 30 kilometers northwest of Rocky Mountain House, Alberta. The Ferrier and Alder Flats areas produce natural gas and natural gas liquids from the Belly River, Cardium, Notikewin, Falher and Rock Creek zones at depths ranging from 1,800 to 2,700 meters. The Willesden Green area is located approximately 40 kilometers north of Rocky Mountain House, Alberta. Pembina is located over 20 kilometers west of Drayton Valley, Alberta. Strachan is located approximately 10 kilometers south of Rocky Mountain House, Alberta. Harmattan is located approximately 80 kilometers northwest of Calgary near the town of Sundre, Alberta.

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