InterOil (NYSE: IOC) and Cenovus Energy (NYSE:CVE) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.

Earnings and Valuation

This table compares InterOil and Cenovus Energy’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
InterOil N/A N/A N/A ($3.70) N/A
Cenovus Energy $9.09 billion 1.14 -$411.58 million $1.98 4.26

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

Dividends

Cenovus Energy pays an annual dividend of $0.16 per share and has a dividend yield of 1.9%. InterOil does not pay a dividend. Cenovus Energy pays out 8.1% of its earnings in the form of a dividend.

Insider and Institutional Ownership

46.6% of InterOil shares are owned by institutional investors. Comparatively, 56.8% of Cenovus Energy shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares InterOil and Cenovus Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
InterOil -233.48% -14.08% -8.85%
Cenovus Energy 17.45% 6.19% 2.81%

Analyst Recommendations

This is a summary of current ratings for InterOil and Cenovus Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
InterOil 0 0 0 0 N/A
Cenovus Energy 2 4 7 0 2.38

Cenovus Energy has a consensus target price of $15.10, suggesting a potential upside of 78.91%.

Summary

Cenovus Energy beats InterOil on 8 of the 9 factors compared between the two stocks.

About InterOil

InterOil Corporation (InterOil) is an oil and gas business with a sole focus on Papua New Guinea (PNG). The Company’s segments include Upstream and Corporate. The Upstream segment includes exploration, appraisal and development of hydrocarbon structures in PNG. The Corporate segment provides support to the Company’s other business segments through business development and improvement activities, general services, administration, human resources, executive management, financing and treasury, government affairs and investor relations. InterOil holds interests across over four exploration and approximately two production retention licenses in the Eastern Papuan Basin of Papua New Guinea. Its assets include the Elk, Antelope, Triceratops, Raptor and Bobcat fields in the Gulf Province of Papua New Guinea, and exploration licenses covering approximately 16,000 square kilometers (over four million acres) in Papua New Guinea.

About Cenovus Energy

Cenovus Energy Inc is a Canada-based integrated oil company. It operates in the business of developing, producing and marketing crude oil, Natural Gas Liquids (NGLs) and natural gas in Canada. The Company also conducts marketing activities and owns refining interests in the United States (U.S.). Its segments include: Oil Sands, which includes the development and production of bitumen and natural gas in northeast Alberta; Conventional, which includes the development and production of conventional crude oil, NGLs and natural gas in Alberta and Saskatchewan, including the heavy oil assets at Pelican Lake, the carbon dioxide (CO2) enhanced oil recovery (EOR) project at Weyburn and emerging tight oil opportunities; Refining and Marketing, which includes transporting and selling crude oil and natural gas and joint ownership of refineries in the U.S., as well as Corporate and Eliminations.

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