Chesapeake Energy Corporation (CHK) vs. Its Rivals Financial Contrast

Chesapeake Energy Corporation (NYSE: CHK) is one of 240 public companies in the “Oil & Gas Exploration and Production” industry, but how does it weigh in compared to its competitors? We will compare Chesapeake Energy Corporation to similar companies based on the strength of its risk, institutional ownership, analyst recommendations, earnings, dividends, profitability and valuation.

Institutional and Insider Ownership

64.5% of Chesapeake Energy Corporation shares are held by institutional investors. Comparatively, 62.2% of shares of all “Oil & Gas Exploration and Production” companies are held by institutional investors. 1.1% of Chesapeake Energy Corporation shares are held by company insiders. Comparatively, 11.4% of shares of all “Oil & Gas Exploration and Production” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Chesapeake Energy Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chesapeake Energy Corporation -9.52% -16.10% 3.99%
Chesapeake Energy Corporation Competitors -442.96% 1.53% 0.49%

Volatility and Risk

Chesapeake Energy Corporation has a beta of 2.02, suggesting that its stock price is 102% more volatile than the S&P 500. Comparatively, Chesapeake Energy Corporation’s competitors have a beta of 1.41, suggesting that their average stock price is 41% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Chesapeake Energy Corporation and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chesapeake Energy Corporation 3 16 5 0 2.08
Chesapeake Energy Corporation Competitors 1572 7874 12175 268 2.51

Chesapeake Energy Corporation presently has a consensus target price of $6.48, suggesting a potential upside of 61.93%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 44.65%. Given Chesapeake Energy Corporation’s higher probable upside, analysts clearly believe Chesapeake Energy Corporation is more favorable than its competitors.

Earnings & Valuation

This table compares Chesapeake Energy Corporation and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Chesapeake Energy Corporation $9.25 billion $1.50 billion -2.19
Chesapeake Energy Corporation Competitors $1.39 billion $598.28 million 21.12

Chesapeake Energy Corporation has higher revenue and earnings than its competitors. Chesapeake Energy Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Chesapeake Energy Corporation beats its competitors on 7 of the 12 factors compared.

About Chesapeake Energy Corporation

Chesapeake Energy Corporation produces natural gas, oil and natural gas liquids (NGL) in the United States. It operates in two segments: Exploration and Production, and Marketing, Gathering and Compression. Exploration and production is engaged in finding and producing oil, natural gas and NGL. Marketing, gathering and compression is engaged in marketing, gathering and compression of oil, natural gas and NGL. As of December 31, 2016, it owned interests in approximately 22,700 oil and natural gas wells. It has a diverse resource base of onshore the United States unconventional natural gas and liquids assets. It has positions in resource plays of the Eagle Ford Shale in South Texas, the Utica Shale in Ohio, the Anadarko Basin in northwestern Oklahoma and the stacked pay in the Powder River Basin in Wyoming. Its natural gas resource plays are the Haynesville/Bossier Shales in northwestern Louisiana and East Texas and the Marcellus Shale in the northern Appalachian Basin in Pennsylvania.

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