Chesapeake Granite Wash Trust (NYSE:CHKR) and Berry Petroleum (NYSE:BRY) Head to Head Contrast

Berry Petroleum (NASDAQ:BRY) and Chesapeake Granite Wash Trust (NYSE:CHKR) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Dividends

Berry Petroleum pays an annual dividend of $0.48 per share and has a dividend yield of 4.7%. Chesapeake Granite Wash Trust pays an annual dividend of $0.12 per share and has a dividend yield of 12.0%. Berry Petroleum pays out 38.1% of its earnings in the form of a dividend.

Insider and Institutional Ownership

0.7% of Chesapeake Granite Wash Trust shares are owned by institutional investors. 0.6% of Berry Petroleum shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Berry Petroleum and Chesapeake Granite Wash Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Berry Petroleum 18.84% 13.15% 6.87%
Chesapeake Granite Wash Trust 81.70% 42.63% 42.51%

Earnings and Valuation

This table compares Berry Petroleum and Chesapeake Granite Wash Trust’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Berry Petroleum $586.56 million 1.42 $147.10 million $1.26 8.08
Chesapeake Granite Wash Trust $13.50 million 3.46 $11.30 million N/A N/A

Berry Petroleum has higher revenue and earnings than Chesapeake Granite Wash Trust.

Analyst Recommendations

This is a breakdown of recent ratings for Berry Petroleum and Chesapeake Granite Wash Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Berry Petroleum 0 1 9 0 2.90
Chesapeake Granite Wash Trust 0 0 0 0 N/A

Berry Petroleum currently has a consensus price target of $17.25, indicating a potential upside of 69.45%. Given Berry Petroleum’s higher possible upside, analysts plainly believe Berry Petroleum is more favorable than Chesapeake Granite Wash Trust.

Summary

Chesapeake Granite Wash Trust beats Berry Petroleum on 7 of the 13 factors compared between the two stocks.

About Berry Petroleum

Berry Petroleum Company, LLC., formerly Berry Petroleum Company, is an independent energy company. The Company is engaged in the production, development, exploitation, and acquisition of oil and natural gas. The Company’s principal reserves and producing properties are located in California (South Midway-Sunset (SMWSS)-Steam Floods, North Midway-Sunset (NMWSS)-Diatomite, NMWSS-New Steam Floods, Texas (Permian and E. Texas), Utah (Uinta) and Colorado (Piceance). The Company’s operations are conducted in the continental United States. In December 2013, Linn Energy LLC and Linn Co, LLC (Linn Co) announced the completion of the merger between LinnCo and Berry Petroleum Company (Berry), where LinnCo had acquired all of Berry’s interest.

About Chesapeake Granite Wash Trust

Chesapeake Granite Wash Trust owns royalty interests in oil, natural gas liquids, 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, 2018, its reserve estimates for the royalty interests included 5,075 thousand barrels of oil equivalent of proved developed reserves. The company was founded in 2011 and is based in Houston, Texas.

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