Comparing Chord Energy (NASDAQ:CHRD) & Sunoco (NYSE:SUN)

Chord Energy (NASDAQ:CHRD) and Sunoco (NYSE:SUN) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Volatility & Risk

Chord Energy has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, Sunoco has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.

Earnings and Valuation

This table compares Chord Energy and Sunoco”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chord Energy	$6.32 billion	1.28	$44.46 million	$14.92	9.94
Sunoco	$39.58 billion	0.38	$527.00 million	$4.52	16.05

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Chord Energy and Sunoco, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chord Energy	0	4	13	0	2.76
Sunoco	0	1	8	1	3.00

Chord Energy currently has a consensus target price of $172.69, indicating a potential upside of 16.42%. Sunoco has a consensus target price of $79.38, indicating a potential upside of 9.39%. Given Chord Energy’s higher probable upside, analysts clearly believe Chord Energy is more favorable than Sunoco.

Dividends

Chord Energy pays an annual dividend of $5.20 per share and has a dividend yield of 3.5%. Sunoco pays an annual dividend of $4.00 per share and has a dividend yield of 5.5%. Chord Energy pays out 34.9% of its earnings in the form of a dividend. Sunoco pays out 88.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chord Energy has increased its dividend for 1 consecutive years and Sunoco has increased its dividend for 3 consecutive years. Sunoco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

97.8% of Chord Energy shares are owned by institutional investors. Comparatively, 24.3% of Sunoco shares are owned by institutional investors. 0.8% of Chord Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Chord Energy and Sunoco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chord Energy	13.42%	10.18%	6.24%
Sunoco	2.88%	18.78%	4.29%

Summary

Chord Energy beats Sunoco on 10 of the 18 factors compared between the two stocks.

About Chord Energy

Chord Energy Corporation operates as an independent exploration and production company in the United States. It acquires, explores, develops, and produces crude oil, natural gas, and natural gas liquids in the Williston Basin. The company sells its products to refiners, marketers, and other purchasers that have access to nearby pipeline and rail facilities. The company was formerly known as Oasis Petroleum Inc. and changed its name to Chord Energy Corporation in July 2022. Chord Energy Corporation was founded in 2007 and is headquartered in Houston, Texas.

About Sunoco

Sunoco LP, together with its subsidiaries, distributes and retails motor fuels in the United States. It operates through two segments: Fuel Distribution and Marketing, and All Other. The Fuel Distribution and Marketing segment purchases motor fuel, as well as other petroleum products, such as propane and lubricating oil from independent refiners and oil companies and supplies it to company-operated retail stores, independently operated commission agents, and retail stores, as well as other commercial customers, including unbranded retail stores, other fuel distributors, school districts, municipalities, and other industrial customers. It owns and operates retail stores under the APlus and Aloha Island Mart brand names; and offers food, beverages, snacks, grocery and non-food merchandise, motor fuels, and other services. The All Other segment includes partnership credit card services, franchise royalties, and retail operations; and offers credit card processing, car washes, lottery, automated teller machines, money order, prepaid phone cards, and wireless services. The company was formerly known as Susser Petroleum Partners LP and changed its name to Sunoco LP in 2014. Sunoco LP was founded in 1886 and is headquartered in Dallas, Texas.