Legacy Reserves LP Unit (NASDAQ:LGCY) and CNX Resources (NYSE:CNX) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.
Insider and Institutional Ownership
21.3% of Legacy Reserves LP Unit shares are owned by institutional investors. Comparatively, 95.6% of CNX Resources shares are owned by institutional investors. 40.6% of Legacy Reserves LP Unit shares are owned by insiders. Comparatively, 2.0% of CNX Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Legacy Reserves LP Unit has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500. Comparatively, CNX Resources has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Legacy Reserves LP Unit and CNX Resources, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Legacy Reserves LP Unit||0||2||0||0||2.00|
CNX Resources has a consensus price target of $21.63, suggesting a potential upside of 52.72%. Given CNX Resources’ stronger consensus rating and higher probable upside, analysts clearly believe CNX Resources is more favorable than Legacy Reserves LP Unit.
Earnings & Valuation
This table compares Legacy Reserves LP Unit and CNX Resources’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Legacy Reserves LP Unit||$436.30 million||0.88||-$53.89 million||($0.50)||-10.02|
|CNX Resources||$1.46 billion||2.07||$380.74 million||($0.16)||-88.50|
CNX Resources has higher revenue and earnings than Legacy Reserves LP Unit. CNX Resources is trading at a lower price-to-earnings ratio than Legacy Reserves LP Unit, indicating that it is currently the more affordable of the two stocks.
CNX Resources pays an annual dividend of $0.13 per share and has a dividend yield of 0.9%. Legacy Reserves LP Unit does not pay a dividend. CNX Resources pays out -81.3% of its earnings in the form of a dividend. Legacy Reserves LP Unit has increased its dividend for 7 consecutive years.
This table compares Legacy Reserves LP Unit and CNX Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Legacy Reserves LP Unit||-8.74%||-1.87%||-2.19%|
CNX Resources beats Legacy Reserves LP Unit on 13 of the 17 factors compared between the two stocks.
About Legacy Reserves LP Unit
Legacy Reserves LP acquires and develops oil and natural gas properties primarily in the Permian Basin, East Texas, Rocky Mountain, and Mid-Continent regions of the United States. As of December 31, 2017, the company owned interests in producing oil and natural gas properties in 606 fields comprising 10,492 gross productive wells, including 3,497 operated and 6,995 non-operated wells located in the Permian Basin, East Texas, Piceance Basin of Colorado, Texas Panhandle, Wyoming, North Dakota, Montana, Oklahoma, and other states. It had proved reserves of approximately 180.0 million barrels of crude oil equivalent. Legacy Reserves LP was founded in 2005 and is headquartered in Midland, Texas.
About CNX Resources
CNX Resources Corporation, an independent oil and natural gas company, explores for, develops, and produces natural gas in the Appalachian Basin. As of December 31, 2017, it had 7.6 trillion cubic feet equivalent of proved natural gas reserves. The company also owns, operates, and develops natural gas gathering and other midstream energy assets in the Marcellus Shale in Pennsylvania and West Virginia. In addition, it offers gas gathering and water delivery solutions, as well as land services to third-parties. The company was formerly known as CONSOL Energy Inc. and changed its name to CNX Resources Corporation in November 2017. CNX Resources Corporation was incorporated in 1991 and is headquartered in Canonsburg, Pennsylvania.
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