Chesapeake Energy Corporation (NYSE: CHK) is one of 246 public companies in the “Oil & Gas Exploration and Production” industry, but how does it weigh in compared to its peers? We will compare Chesapeake Energy Corporation to related businesses based on the strength of its dividends, profitability, valuation, risk, earnings, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
64.6% of Chesapeake Energy Corporation shares are held by institutional investors. Comparatively, 61.2% of shares of all “Oil & Gas Exploration and Production” companies are held by institutional investors. 1.1% of Chesapeake Energy Corporation shares are held by company insiders. Comparatively, 11.8% of shares of all “Oil & Gas Exploration and Production” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Chesapeake Energy Corporation and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Chesapeake Energy Corporation||$9.25 billion||$1.50 billion||-2.10|
|Chesapeake Energy Corporation Competitors||$1.40 billion||$602.68 million||21.81|
Chesapeake Energy Corporation has higher revenue and earnings than its peers. Chesapeake Energy Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This is a breakdown of recent ratings and target prices for Chesapeake Energy Corporation and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Chesapeake Energy Corporation||4||16||5||0||2.04|
|Chesapeake Energy Corporation Competitors||1435||7427||12036||255||2.53|
Chesapeake Energy Corporation presently has a consensus target price of $6.02, indicating a potential upside of 56.41%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 36.47%. Given Chesapeake Energy Corporation’s higher probable upside, research analysts clearly believe Chesapeake Energy Corporation is more favorable than its peers.
Volatility and Risk
Chesapeake Energy Corporation has a beta of 2.07, indicating that its stock price is 107% more volatile than the S&P 500. Comparatively, Chesapeake Energy Corporation’s peers have a beta of 1.42, indicating that their average stock price is 42% more volatile than the S&P 500.
This table compares Chesapeake Energy Corporation and its peers’ 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%|
|Chesapeake Energy Corporation Competitors||-437.45%||-2.62%||0.95%|
Chesapeake Energy Corporation beats its peers on 7 of the 12 factors compared.
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.
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