Chesapeake Granite Wash Trust (NYSE:CHKR) and Concho Resources (NYSE:CXO) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Dividends

Chesapeake Granite Wash Trust pays an annual dividend of $0.25 per share and has a dividend yield of 14.9%. Concho Resources does not pay a dividend.

Valuation & Earnings

This table compares Chesapeake Granite Wash Trust and Concho Resources’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chesapeake Granite Wash Trust $15.66 million 5.01 $13.31 million N/A N/A
Concho Resources $2.59 billion 11.65 $956.00 million $2.09 71.98

Concho Resources has higher revenue and earnings than Chesapeake Granite Wash Trust.

Profitability

This table compares Chesapeake Granite Wash Trust and Concho Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chesapeake Granite Wash Trust 85.09% 45.67% 45.35%
Concho Resources 34.13% 5.37% 3.54%

Institutional & Insider Ownership

0.8% of Chesapeake Granite Wash Trust shares are owned by institutional investors. Comparatively, 77.4% of Concho Resources shares are owned by institutional investors. 1.1% of Concho Resources shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Chesapeake Granite Wash Trust has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, Concho Resources has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Chesapeake Granite Wash Trust and Concho Resources, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chesapeake Granite Wash Trust 0 0 0 0 N/A
Concho Resources 0 7 17 0 2.71

Concho Resources has a consensus target price of $178.09, suggesting a potential upside of 18.39%. Given Concho Resources’ higher possible upside, analysts plainly believe Concho Resources is more favorable than Chesapeake Granite Wash Trust.

Summary

Concho Resources beats Chesapeake Granite Wash Trust on 9 of the 13 factors compared between the two stocks.

Chesapeake Granite Wash Trust Company Profile

Chesapeake Granite Wash Trust owns royalty interests in the oil and natural gas properties located in the Colony Granite Wash play in Washita County in the Anadarko Basin of Western Oklahoma. The company has royalty interests in 69 producing wells and 118 development wells, and in approximately 26,400 net acres of area. As of December 31, 2017, its reserve estimates for the royalty interests included 6,601 thousand barrels of oil equivalent of proved developed reserves. The company was founded in 2011 and is based in Houston, Texas.

Concho Resources Company Profile

Concho Resources Inc., an independent oil and natural gas company, engages in the acquisition, development, and exploration of oil and natural gas properties in the United States. The company's principal operating areas are located in the Permian Basin of southeast New Mexico and west Texas. As of December 31, 2017, its total estimated proved reserves were 840 million barrels of oil equivalent. Concho Resources Inc. was founded in 2006 and is headquartered in Midland, Texas.

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