Comparing EQT (NYSE:EQT) & Chaparral Energy (NYSE:CHAP)

EQT (NYSE:EQT) and Chaparral Energy (NYSE:CHAP) are both oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Risk and Volatility

EQT has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, Chaparral Energy has a beta of 4.02, indicating that its share price is 302% more volatile than the S&P 500.

Dividends

EQT pays an annual dividend of $0.12 per share and has a dividend yield of 1.0%. Chaparral Energy does not pay a dividend. EQT pays out 7.1% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares EQT and Chaparral Energy’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EQT $4.56 billion 0.66 -$2.24 billion $1.70 6.95
Chaparral Energy $247.36 million 0.35 $33.44 million $0.31 5.97

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for EQT and Chaparral Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EQT 1 7 6 0 2.36
Chaparral Energy 0 0 2 0 3.00

EQT currently has a consensus price target of $30.75, suggesting a potential upside of 160.37%. Chaparral Energy has a consensus price target of $24.00, suggesting a potential upside of 1,197.30%. Given Chaparral Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Chaparral Energy is more favorable than EQT.

Institutional & Insider Ownership

97.3% of EQT shares are owned by institutional investors. Comparatively, 94.0% of Chaparral Energy shares are owned by institutional investors. 0.7% of EQT shares are owned by insiders. Comparatively, 2.2% of Chaparral Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares EQT and Chaparral Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EQT -7.41% 4.25% 2.33%
Chaparral Energy -33.24% -1.48% -0.90%

Summary

EQT beats Chaparral Energy on 10 of the 16 factors compared between the two stocks.

About EQT

EQT Corporation operates as a natural gas production company in the United States. It produces natural gas, natural gas liquids (NGLs), and crude oil. As of December 31, 2018, this segment had 21.8 trillion cubic feet of proved natural gas, NGLs, and crude oil reserves across approximately 1.4 million gross acres. The company was founded in 1925 and is headquartered in Pittsburgh, Pennsylvania.

About Chaparral Energy

Chaparral Energy, Inc. engages in the acquisition, exploration, development, production, and operation of onshore oil and natural gas properties primarily in Oklahoma, the United States. The company sells crude oil, natural gas, and natural gas liquids primarily to refineries and gas processing plant. The company was founded in 1988 and is headquartered in Oklahoma City, Oklahoma.

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