Head-To-Head Review: Chesapeake Energy Corporation (CHK) vs. Enduro Royalty Trust (NDRO)
Chesapeake Energy Corporation (NYSE: CHK) and Enduro Royalty Trust (NYSE:NDRO) are both oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, earnings, risk and valuation.
Valuation & Earnings
This table compares Chesapeake Energy Corporation and Enduro Royalty Trust’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Chesapeake Energy Corporation||$9.25 billion||0.35||$1.50 billion||($1.83)||-1.97|
|Enduro Royalty Trust||$11.26 million||10.40||$10.89 million||$0.33||10.76|
Chesapeake Energy Corporation has higher revenue and earnings than Enduro Royalty Trust. Chesapeake Energy Corporation is trading at a lower price-to-earnings ratio than Enduro Royalty Trust, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Chesapeake Energy Corporation has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500. Comparatively, Enduro Royalty Trust has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for Chesapeake Energy Corporation and Enduro Royalty Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Chesapeake Energy Corporation||3||15||5||0||2.09|
|Enduro Royalty Trust||0||0||1||0||3.00|
Chesapeake Energy Corporation presently has a consensus price target of $6.60, indicating a potential upside of 82.69%. Enduro Royalty Trust has a consensus price target of $3.75, indicating a potential upside of 5.63%. Given Chesapeake Energy Corporation’s higher probable upside, research analysts clearly believe Chesapeake Energy Corporation is more favorable than Enduro Royalty Trust.
This table compares Chesapeake Energy Corporation and Enduro Royalty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Chesapeake Energy Corporation||-9.52%||-16.10%||3.99%|
|Enduro Royalty Trust||24.94%||10.08%||10.08%|
Insider & Institutional Ownership
64.5% of Chesapeake Energy Corporation shares are owned by institutional investors. Comparatively, 57.7% of Enduro Royalty Trust shares are owned by institutional investors. 1.1% of Chesapeake Energy Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Enduro Royalty Trust pays an annual dividend of $0.13 per share and has a dividend yield of 3.7%. Chesapeake Energy Corporation does not pay a dividend. Enduro Royalty Trust pays out 39.4% of its earnings in the form of a dividend.
Chesapeake Energy Corporation Company Profile
Chesapeake Energy Corporation produces natural gas, oil and natural gas liquids (NGL) in the United States. It operates in two segments: Exploration and Production, and Marketing, Gathering and Compression. Exploration and production is engaged in finding and producing oil, natural gas and NGL. Marketing, gathering and compression is engaged in marketing, gathering and compression of oil, natural gas and NGL. As of December 31, 2016, it owned interests in approximately 22,700 oil and natural gas wells. It has a diverse resource base of onshore the United States unconventional natural gas and liquids assets. It has positions in resource plays of the Eagle Ford Shale in South Texas, the Utica Shale in Ohio, the Anadarko Basin in northwestern Oklahoma and the stacked pay in the Powder River Basin in Wyoming. Its natural gas resource plays are the Haynesville/Bossier Shales in northwestern Louisiana and East Texas and the Marcellus Shale in the northern Appalachian Basin in Pennsylvania.
Enduro Royalty Trust Company Profile
Enduro Royalty Trust (the Trust) is a statutory trust formed by Enduro Resource Partners LLC (Enduro), as trustor, The Bank of New York Mellon Trust Company, N.A. (the Trustee), as trustee, and Wilmington Trust Company (the Delaware Trustee), as Delaware Trustee. The Trust was created to acquire and hold for the benefit of the Trust unitholders a net profits interest representing the right to receive approximately 80% of the net profits from the sale of oil and natural gas production from certain properties in the states of Texas, Louisiana and New Mexico held by Enduro as of the date of the conveyance of the net profits interest to the Trust (the Net Profits Interest). The properties in which the Trust holds the Net Profits Interest are referred to as the Underlying Properties. Enduro is engaged in the production and development of oil and natural gas. The Underlying Properties comprises producing and non-producing interests in oil and natural gas units, wells and lands.
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