Critical Comparison: Cabot Oil & Gas Corporation (COG) and Baytex Energy Corp (BTE)
Cabot Oil & Gas Corporation (NYSE: COG) and Baytex Energy Corp (NYSE:BTE) are both oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitabiliy.
This is a summary of recent ratings and recommmendations for Cabot Oil & Gas Corporation and Baytex Energy Corp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cabot Oil & Gas Corporation||0||8||14||0||2.64|
|Baytex Energy Corp||1||4||2||0||2.14|
Cabot Oil & Gas Corporation currently has a consensus price target of $29.80, indicating a potential upside of 20.02%. Baytex Energy Corp has a consensus price target of $7.44, indicating a potential upside of 176.49%. Given Baytex Energy Corp’s higher probable upside, analysts plainly believe Baytex Energy Corp is more favorable than Cabot Oil & Gas Corporation.
Insider and Institutional Ownership
97.0% of Cabot Oil & Gas Corporation shares are held by institutional investors. Comparatively, 19.8% of Baytex Energy Corp shares are held by institutional investors. 1.6% of Cabot Oil & Gas Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Cabot Oil & Gas Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. Baytex Energy Corp does not pay a dividend. Cabot Oil & Gas Corporation pays out -54.1% of its earnings in the form of a dividend.
This table compares Cabot Oil & Gas Corporation and Baytex Energy Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cabot Oil & Gas Corporation||-10.95%||4.68%||2.39%|
|Baytex Energy Corp||-38.91%||-5.17%||-2.21%|
Valuation & Earnings
This table compares Cabot Oil & Gas Corporation and Baytex Energy Corp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cabot Oil & Gas Corporation||$1.59 billion||7.22||$881.72 million||($0.37)||-67.11|
|Baytex Energy Corp||$595.60 million||1.06||$334.80 million||($1.32)||-2.04|
Cabot Oil & Gas Corporation has higher revenue and earnings than Baytex Energy Corp. Cabot Oil & Gas Corporation is trading at a lower price-to-earnings ratio than Baytex Energy Corp, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Cabot Oil & Gas Corporation has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, Baytex Energy Corp has a beta of 3.29, suggesting that its stock price is 229% more volatile than the S&P 500.
Cabot Oil & Gas Corporation beats Baytex Energy Corp on 13 of the 15 factors compared between the two stocks.
Cabot Oil & Gas Corporation Company Profile
Cabot Oil & Gas Corporation is an independent oil and gas company engaged in the development, exploitation and exploration of oil and gas properties. The Company operates in the segment of natural gas and oil development, exploitation, exploration and production, in the continental United States. Its assets are concentrated in areas with known hydrocarbon resources, which are conducive to multi-well, repeatable drilling programs. As of December 31, 2016, its exploration, development and production operations were primarily concentrated in two unconventional plays: the Marcellus Shale in northeast Pennsylvania and the Eagle Ford Shale in south Texas. The Company also has operations in various other unconventional and conventional plays throughout the continental United States. Its Marcellus Shale properties are principally located in Susquehanna County, Pennsylvania. Its properties in the Eagle Ford Shale are principally located in Atascosa, Frio and La Salle Counties, Texas.
Baytex Energy Corp Company Profile
Baytex Energy Corp. (Baytex) is engaged in the business of acquiring, developing, exploiting and holding interests in petroleum and natural gas properties and related assets in Canada (Alberta and Saskatchewan) and in the United States (Texas). The Company’s crude oil and natural gas operations are organized into four business units: Lloydminster, Peace River, Conventional and United States. Each business unit has a portfolio of mineral leases, operated and non-operated properties and development prospects. The Company’s subsidiaries include Baytex Energy Ltd. and Baytex Energy USA, Inc. Baytex Energy Ltd. is engaged in the business of oil and natural gas exploration, exploitation, development, acquisition and production in Canada. Baytex Energy USA, Inc. is engaged in the business of oil and natural gas exploration, exploitation, development, acquisition and production in the United States. It holds all of the operating assets in the United States.
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