Canadian Natural Resource (NYSE: CNQ) is one of 227 public companies in the “Oil & Gas Exploration and Production” industry, but how does it weigh in compared to its competitors? We will compare Canadian Natural Resource to similar companies based on the strength of its institutional ownership, profitability, earnings, risk, analyst recommendations, valuation and dividends.

Volatility and Risk

Canadian Natural Resource has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Canadian Natural Resource’s competitors have a beta of 1.38, meaning that their average stock price is 38% more volatile than the S&P 500.

Earnings & Valuation

This table compares Canadian Natural Resource and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Canadian Natural Resource $12.28 billion -$154.06 million 20.44
Canadian Natural Resource Competitors $1.86 billion -$439.03 million -20.41

Canadian Natural Resource has higher revenue and earnings than its competitors. Canadian Natural Resource is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Canadian Natural Resource pays an annual dividend of $0.88 per share and has a dividend yield of 2.5%. Canadian Natural Resource pays out 52.1% of its earnings in the form of a dividend. As a group, “Oil & Gas Exploration and Production” companies pay a dividend yield of 1.7% and pay out 288.6% of their earnings in the form of a dividend. Canadian Natural Resource has raised its dividend for 5 consecutive years. Canadian Natural Resource is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current ratings for Canadian Natural Resource and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Canadian Natural Resource 0 1 9 1 3.00
Canadian Natural Resource Competitors 1465 7678 12390 259 2.53

Canadian Natural Resource currently has a consensus target price of $46.78, indicating a potential upside of 35.43%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 42.33%. Given Canadian Natural Resource’s competitors higher probable upside, analysts clearly believe Canadian Natural Resource has less favorable growth aspects than its competitors.

Profitability

This table compares Canadian Natural Resource and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Canadian Natural Resource 16.71% 4.68% 2.06%
Canadian Natural Resource Competitors -445.08% 24.45% 6.35%

Insider and Institutional Ownership

59.4% of Canadian Natural Resource shares are held by institutional investors. Comparatively, 61.8% of shares of all “Oil & Gas Exploration and Production” companies are held by institutional investors. 5.0% of Canadian Natural Resource shares are held by company insiders. Comparatively, 12.6% of shares of all “Oil & Gas Exploration and Production” companies 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.

Summary

Canadian Natural Resource beats its competitors on 10 of the 15 factors compared.

About Canadian Natural Resource

Canadian Natural Resources Limited is an independent crude oil and natural gas exploration, development and production company. The Company’s segments include Exploration and Production, Oil Sands Mining and Upgrading, and Midstream. The Exploration and Production segment includes exploration, development, production and marketing of crude oil, natural gas liquids (NGLs) and natural gas. The Company’s exploration and production operations are focused in North America in Western Canada, the United Kingdom portion of the North Sea, and Cote d’Ivoire, Gabon and South Africa in Offshore Africa. The Horizon Oil Sands Mining and Upgrading segment (Horizon) produces synthetic crude oil (SCO) through bitumen mining and upgrading operations. Midstream activities include the Company’s pipeline operations, an electricity co-generation system and an investment in the North West Redwater Partnership (Redwater Partnership).

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