Linn Energy (NASDAQ: LINE) and Crescent Point Energy Corporation (NYSE:CPG) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.
This is a summary of recent ratings and target prices for Linn Energy and Crescent Point Energy Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Crescent Point Energy Corporation||0||2||2||0||2.50|
Crescent Point Energy Corporation has a consensus price target of $15.50, suggesting a potential upside of 80.65%. Given Crescent Point Energy Corporation’s higher possible upside, analysts plainly believe Crescent Point Energy Corporation is more favorable than Linn Energy.
Crescent Point Energy Corporation pays an annual dividend of $0.29 per share and has a dividend yield of 3.4%. Linn Energy does not pay a dividend. Crescent Point Energy Corporation pays out -35.4% of its earnings in the form of a dividend.
Insider & Institutional Ownership
38.8% of Crescent Point Energy Corporation shares are held by institutional investors. 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.
This table compares Linn Energy and Crescent Point Energy Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Crescent Point Energy Corporation||-18.68%||2.45%||1.44%|
Earnings and Valuation
This table compares Linn Energy and Crescent Point Energy Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Crescent Point Energy Corporation||$1.92 billion||2.43||-$704.37 million||($0.82)||-10.46|
Linn Energy has higher revenue, but lower earnings than Crescent Point Energy Corporation. Crescent Point Energy Corporation is trading at a lower price-to-earnings ratio than Linn Energy, indicating that it is currently the more affordable of the two stocks.
Crescent Point Energy Corporation beats Linn Energy on 10 of the 10 factors compared between the two stocks.
About Linn Energy
Linn Energy, Inc., formerly Linn Energy, LLC, is an oil and natural gas company. The Company focuses on acquiring, developing and maximizing cash flow from a portfolio of oil and natural gas asset. Its properties include Hugoton Basin, which includes properties located in Kansas, the Oklahoma Panhandle and the Shallow Texas Panhandle; Rockies, which includes properties located in Wyoming, Utah, North Dakota and Colorado; California, which includes properties located in the San Joaquin Valley and Los Angeles basins; TexLa, which includes properties located in east Texas and north Louisiana; Mid-Continent, which includes Oklahoma properties located in the Anadarko and Arkoma basins, as well as waterfloods in the Central Oklahoma Platform; Michigan/Illinois, which includes properties located in the Antrim Shale formation in north Michigan and oil properties in south Illinois; Permian Basin, which includes properties located in west Texas and southeast New Mexico, and South Texas.
About Crescent Point Energy Corporation
Crescent Point Energy Corp. acquires, explores, develops, and produces light and medium oil and natural gas properties in Western Canada and the United States. The company's crude oil and natural gas properties, and related assets are located in the provinces of Saskatchewan, Alberta, British Columbia, and Manitoba; and the states of North Dakota, Montana, Colorado, and Utah. Crescent Point Energy Corp. is headquartered in Calgary, Canada.
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