CNOOC (NYSE: CEO) and Cenovus Energy (NYSE:CVE) are both large-cap oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Analyst Ratings

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This is a breakdown of current ratings and target prices for CNOOC and Cenovus Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CNOOC 0 1 5 1 3.00
Cenovus Energy 2 4 7 0 2.38

CNOOC currently has a consensus price target of $72.32, indicating a potential downside of 50.33%. Cenovus Energy has a consensus price target of $15.10, indicating a potential upside of 79.55%. Given Cenovus Energy’s higher possible upside, analysts clearly believe Cenovus Energy is more favorable than CNOOC.

Volatility and Risk

CNOOC has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, Cenovus Energy has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Institutional & Insider Ownership

1.6% of CNOOC shares are held by institutional investors. Comparatively, 74.4% of Cenovus Energy shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
CNOOC N/A N/A N/A
Cenovus Energy 18.92% 0.53% 0.25%

Earnings & Valuation

This table compares CNOOC and Cenovus Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CNOOC $22.06 billion 2.95 $92.00 million N/A N/A
Cenovus Energy $13.14 billion 0.79 $2.60 billion $2.29 3.67

Cenovus Energy has lower revenue, but higher earnings than CNOOC.

Dividends

CNOOC pays an annual dividend of $4.92 per share and has a dividend yield of 3.4%. Cenovus Energy pays an annual dividend of $0.16 per share and has a dividend yield of 1.9%. Cenovus Energy pays out 7.0% of its earnings in the form of a dividend.

About CNOOC

CNOOC Limited is a Hong Kong-based investment holding company principally engaged in the exploration, production and trading of oil and gas. Its businesses include conventional oil and gas businesses, shale oil and gas businesses, oil sands businesses and other unconventional oil and gas businesses. The Company mainly operates businesses through three segments. The Exploration and Production segment is engaged in the exploration, development and production of crude oil, natural gas and other petroleum products. The Trading segment is engaged in the trading of crude oil, natural gas and other petroleum products. The Corporate segment is engaged in corporate-related businesses. The Company mainly operates businesses in China, Canada, the United Kingdom, Nigeria, Indonesia and Brazil, among others.

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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