Critical Analysis: Total (TOT) and Carbon Natural Gas (CRBO)

Total (NYSE:TOT) and Carbon Natural Gas (OTCMKTS:CRBO) are both oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Dividends

Total pays an annual dividend of $2.48 per share and has a dividend yield of 4.3%. Carbon Natural Gas does not pay a dividend. Total pays out 60.2% of its earnings in the form of a dividend.

Profitability

This table compares Total and Carbon Natural Gas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Total 5.55% 11.09% 5.22%
Carbon Natural Gas 18.47% 12.01% 3.98%

Valuation and Earnings

This table compares Total and Carbon Natural Gas’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Total $171.49 billion 0.83 $8.63 billion $4.12 13.93
Carbon Natural Gas $22.47 million 3.10 $6.31 million N/A N/A

Total has higher revenue and earnings than Carbon Natural Gas.

Volatility and Risk

Total has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Carbon Natural Gas has a beta of 2.46, suggesting that its share price is 146% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Total and Carbon Natural Gas, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Total 1 4 11 1 2.71
Carbon Natural Gas 0 0 0 0 N/A

Total currently has a consensus target price of $48.17, indicating a potential downside of 16.09%. Given Total’s higher probable upside, research analysts plainly believe Total is more favorable than Carbon Natural Gas.

Insider and Institutional Ownership

5.9% of Total shares are held by institutional investors. Comparatively, 6.4% of Carbon Natural Gas shares are held by institutional investors. 71.7% of Carbon Natural Gas shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Carbon Natural Gas beats Total on 8 of the 15 factors compared between the two stocks.

About Total

TOTAL S.A. operates as an integrated oil and gas company worldwide. The company operates through Exploration & Production; Gas, Renewables & Power; Refining & Chemicals; and Marketing & Services segments. The Exploration & Production segment engages in the exploration and production activities in approximately 50 countries, and produces oil or gas in approximately 30 countries. The Gas, Renewables & Power segment is involved in the production, liquefaction, and trading of natural gas; production and trading of electricity, liquefied natural gas(LNG), liquefied petroleum gas, and petcoke and sulfur; LNG regasification; and transportation and storage of natural gas. This segment also designs, manufactures and supplies photovoltaic cells and panels. The Refining & Chemicals segment refines petrochemicals, including olefins and aromatics; and polymer derivatives, such as polyethylene, polypropylene, polystyrene, and hydrocarbon resins, as well as engages in biomass conversion and elastomer processing. It is also involved in trading and shipping crude oil and petroleum products. The Marketing & Services segment supplies and markets petroleum products, including bulk fuel, aviation fuel, special fluids, LPG, bitumen, heavy fuels, and marine bunkers; produces and sells lubricants. It operates approximately 16,000 service stations. TOTAL S.A. also develops renewable energies with a focus on solar and biomass. As of December 31, 2016, the company had 11,475 Mboe of combined proved reserves of oil and gas. TOTAL S.A. was founded in 1924 and is headquartered in Courbevoie, France.

About Carbon Natural Gas

Carbon Energy Corporation, an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids properties in the United States. It focuses on conventional and unconventional reservoirs, including shale, tight sand, and coalbed methane located in the Appalachian, Illinois, and Ventura Basins. As of December 31, 2017, it owned working interests in 2,600 net wells and royalty interests located in Kentucky, Ohio, Tennessee, and West Virginia, as well as had leasehold positions in approximately 189,000 net developed acres and approximately 222,400 net undeveloped acres located in the Appalachian basin. The company also owned working interests in 29 net coalbed methane wells in the Illinois Basin; had a leasehold position in approximately 1,900 net developed acres and approximately 58,000 net undeveloped acres. In addition, it owned working interests in 200 net wells; and had leasehold positions in approximately 2,300 net developed acres, as well as approximately 8,000 net undeveloped acres. The company was formerly known as Carbon Natural Gas Company and changed its name to Carbon Energy Corporation in June 2018. Carbon Energy Corporation is based in Denver, Colorado.

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