Financial Comparison: Chesapeake Energy (OTCMKTS:CHKAQ) versus Mexco Energy (NYSE:MXC)

Profitability

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

Net Margins Return on Equity Return on Assets
Chesapeake Energy -162.46% N/A -3.45%
Mexco Energy 18.73% 7.57% 6.94%

Risk and Volatility

Chesapeake Energy has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Mexco Energy has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500.

Institutional and Insider Ownership

2.0% of Chesapeake Energy shares are owned by institutional investors. Comparatively, 5.9% of Mexco Energy shares are owned by institutional investors. 1.1% of Chesapeake Energy shares are owned by company insiders. Comparatively, 55.1% of Mexco Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Chesapeake Energy and Mexco Energy”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chesapeake Energy $8.49 billion 0.00 -$308.00 million ($54.00) -0.06
Mexco Energy $6.92 million 2.59 $1.35 million $0.60 14.63

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

Summary

Mexco Energy beats Chesapeake Energy on 9 of the 11 factors compared between the two stocks.

About Chesapeake Energy

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Chesapeake Energy Corp. is an independent exploration and production company, which engages in acquisition, exploration and development of properties for the production of oil, natural gas and natural gas liquids from underground reservoirs. It focuses on projects located in Louisiana, Ohio, Oklahoma, Pennsylvania, Texas, and Wyoming. The company was founded by Aubrey K. McClendon and Tom L. Ward on May 18, 1989 and is headquartered in Oklahoma City, OK.

About Mexco Energy

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Mexco Energy Corporation, an independent oil and gas company, engages in the acquisition, exploration, development, and production of natural gas, crude oil, condensate, and natural gas liquids in the United States. It owns partial interests in approximately 6,400 gross producing wells located in the states of Texas, New Mexico, Oklahoma, Louisiana, Alabama, Mississippi, Arkansas, Wyoming, Kansas, Colorado, Montana, Virginia, North Dakota, and Ohio. It also owned leasehold mineral, royalty, and other interests in approximately 2,768 net acres. The company was formerly known as Miller Oil Company and changed its name to Mexco Energy Corporation in April 1980. Mexco Energy Corporation was incorporated in 1972 and is based in Midland, Texas.

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