Greenfire Resources (NYSE:GFR – Get Free Report) and Chesapeake Energy (OTCMKTS:CHKAQ – Get Free Report) are both small-cap energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.
Analyst Recommendations
This is a summary of current ratings and price targets for Greenfire Resources and Chesapeake Energy, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Greenfire Resources | 0 | 0 | 1 | 0 | 3.00 |
Chesapeake Energy | 0 | 0 | 0 | 0 | 0.00 |
Greenfire Resources currently has a consensus price target of $10.50, indicating a potential upside of 117.84%. Given Greenfire Resources’ stronger consensus rating and higher possible upside, equities analysts clearly believe Greenfire Resources is more favorable than Chesapeake Energy.
Earnings and Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Greenfire Resources | $822.97 million | 0.41 | -$100.50 million | $1.18 | 4.08 |
Chesapeake Energy | $8.49 billion | 0.00 | -$308.00 million | ($54.00) | -0.06 |
Greenfire Resources has higher earnings, but lower revenue than Chesapeake Energy. Chesapeake Energy is trading at a lower price-to-earnings ratio than Greenfire Resources, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Greenfire Resources has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, Chesapeake Energy has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.
Institutional & Insider Ownership
88.9% of Greenfire Resources shares are held by institutional investors. Comparatively, 2.0% of Chesapeake Energy shares are held by institutional investors. 20.0% of Greenfire Resources shares are held by company insiders. Comparatively, 1.1% of Chesapeake Energy shares are held by company 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.
Profitability
This table compares Greenfire Resources and Chesapeake Energy’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Greenfire Resources | 5.02% | 5.40% | 3.13% |
Chesapeake Energy | -162.46% | N/A | -3.45% |
Summary
Greenfire Resources beats Chesapeake Energy on 12 of the 14 factors compared between the two stocks.
About Greenfire Resources
Greenfire Resources Ltd., together with its subsidiaries, engages in the development, exploration, and operation of oil and gas properties in the Athabasca oil sands region of Alberta. The company operates the Tier-1 oil sands assets located in Western Canada. It utilizes steam-assisted gravity drainage (SAGD) extraction technology, a situ thermal oil recovery process to recover diluted and non- diluted bitumen. The company is headquartered in Calgary, Canada.
About Chesapeake Energy
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.
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