Chesapeake Granite Wash Trust (CHKR) and The Competition Head to Head Analysis

Chesapeake Granite Wash Trust (NYSE: CHKR) is one of 225 public companies in the “Oil & Gas Exploration and Production” industry, but how does it weigh in compared to its peers? We will compare Chesapeake Granite Wash Trust to similar companies based on the strength of its analyst recommendations, dividends, institutional ownership, profitability, valuation, risk and earnings.

Dividends

Chesapeake Granite Wash Trust pays an annual dividend of $0.26 per share and has a dividend yield of 14.1%. Chesapeake Granite Wash Trust pays out 92.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & Gas Exploration and Production” companies pay a dividend yield of 1.7% and pay out 135.9% of their earnings in the form of a dividend. Chesapeake Granite Wash Trust is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Chesapeake Granite Wash Trust and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Chesapeake Granite Wash Trust $12.43 million $12.48 million 6.61
Chesapeake Granite Wash Trust Competitors $1.86 billion -$438.87 million -5.81

Chesapeake Granite Wash Trust’s peers have higher revenue, but lower earnings than Chesapeake Granite Wash Trust. Chesapeake Granite Wash Trust is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Chesapeake Granite Wash Trust and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chesapeake Granite Wash Trust 84.71% 43.81% 43.81%
Chesapeake Granite Wash Trust Competitors -298.15% 23.63% 5.57%

Insider & Institutional Ownership

0.9% of Chesapeake Granite Wash Trust shares are owned by institutional investors. Comparatively, 62.2% of shares of all “Oil & Gas Exploration and Production” companies are owned by institutional investors. 12.5% of shares of all “Oil & Gas Exploration and Production” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Chesapeake Granite Wash Trust has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500. Comparatively, Chesapeake Granite Wash Trust’s peers have a beta of 1.40, suggesting that their average share price is 40% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Chesapeake Granite Wash Trust and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chesapeake Granite Wash Trust 0 0 0 0 N/A
Chesapeake Granite Wash Trust Competitors 1504 7720 12545 265 2.53

As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 23.38%. Given Chesapeake Granite Wash Trust’s peers higher probable upside, analysts clearly believe Chesapeake Granite Wash Trust has less favorable growth aspects than its peers.

Summary

Chesapeake Granite Wash Trust beats its peers on 7 of the 12 factors compared.

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.

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