Battalion Oil (NYSE:BATL) and Coterra Energy (NYSE:CTRA) Financial Survey

Battalion Oil (NYSE:BATL) and Coterra Energy (NYSE:CTRA) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, analyst recommendations, profitability, earnings and risk.

Profitability

This table compares Battalion Oil and Coterra Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Battalion Oil	-1.38%	-32.62%	-5.57%
Coterra Energy	27.48%	12.97%	8.23%

Valuation and Earnings

This table compares Battalion Oil and Coterra Energy’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Battalion Oil	$220.76 million	0.40	-$3.05 million	($0.94)	-5.64
Coterra Energy	$5.91 billion	3.46	$1.63 billion	$2.14	12.71

Coterra Energy has higher revenue and earnings than Battalion Oil. Battalion Oil is trading at a lower price-to-earnings ratio than Coterra Energy, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Battalion Oil has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Coterra Energy has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Battalion Oil and Coterra Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Battalion Oil	0	1	0	0	2.00
Coterra Energy	0	2	13	0	2.87

Battalion Oil presently has a consensus price target of $18.60, indicating a potential upside of 250.94%. Coterra Energy has a consensus price target of $32.00, indicating a potential upside of 17.69%. Given Battalion Oil’s higher possible upside, equities research analysts clearly believe Battalion Oil is more favorable than Coterra Energy.

Insider and Institutional Ownership

86.0% of Battalion Oil shares are held by institutional investors. Comparatively, 87.9% of Coterra Energy shares are held by institutional investors. 56.9% of Battalion Oil shares are held by company insiders. Comparatively, 1.7% of Coterra Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Coterra Energy beats Battalion Oil on 11 of the 14 factors compared between the two stocks.

About Battalion Oil

Battalion Oil Corporation, an independent energy company, engages in the acquisition, production, exploration, and development of onshore oil and natural gas assets in the United States. It holds interests in the Delaware Basin located in the counties of Pecos, Reeves, Ward, and Winkler, Texas. The company was formerly known as Halcón Resources Corporation and changed its name to Battalion Oil Corporation in January 2020. Battalion Oil Corporation was founded in 1987 and is headquartered in Houston, Texas.

About Coterra Energy

Coterra Energy Inc., an independent oil and gas company, engages in the development, exploration, and production of oil, natural gas, and natural gas liquids in the United States. The company's properties include the Marcellus Shale with approximately 186,000 net acres in the dry gas window of the play located in Susquehanna County, Pennsylvania; Permian Basin properties with approximately 296,000 net acres located in west Texas and southeast New Mexico; and Anadarko Basin properties with approximately 182,000 net acres located in Oklahoma. It also operates natural gas and saltwater gathering and disposal systems in Texas. The company sells its natural gas to industrial customers, local distribution companies, oil and gas marketers, major energy companies, pipeline companies, and power generation facilities. Coterra Energy Inc. was incorporated in 1989 and is headquartered in Houston, Texas.