Birchcliff Energy (OTCMKTS:BIREF – Get Free Report) and Canadian Natural Resources (NYSE:CNQ – Get Free Report) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.
Valuation and Earnings
This table compares Birchcliff Energy and Canadian Natural Resources”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Birchcliff Energy | $548.41 million | 2.04 | $7.24 million | $0.11 | 37.73 |
Canadian Natural Resources | $42.49 billion | 1.88 | $6.10 billion | $2.51 | 14.98 |
Canadian Natural Resources has higher revenue and earnings than Birchcliff Energy. Canadian Natural Resources is trading at a lower price-to-earnings ratio than Birchcliff Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
Net Margins | Return on Equity | Return on Assets | |
Birchcliff Energy | 6.05% | 1.82% | 1.27% |
Canadian Natural Resources | 18.05% | 22.09% | 11.51% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Birchcliff Energy and Canadian Natural Resources, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Birchcliff Energy | 0 | 2 | 0 | 0 | 2.00 |
Canadian Natural Resources | 0 | 4 | 1 | 0 | 2.20 |
Canadian Natural Resources has a consensus price target of $49.50, suggesting a potential upside of 31.68%. Given Canadian Natural Resources’ stronger consensus rating and higher probable upside, analysts plainly believe Canadian Natural Resources is more favorable than Birchcliff Energy.
Insider & Institutional Ownership
0.8% of Birchcliff Energy shares are owned by institutional investors. Comparatively, 74.0% of Canadian Natural Resources shares are owned by institutional investors. 1.5% of Birchcliff Energy shares are owned by insiders. Comparatively, 5.0% of Canadian Natural Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility & Risk
Birchcliff Energy has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, Canadian Natural Resources has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.
Dividends
Birchcliff Energy pays an annual dividend of $0.30 per share and has a dividend yield of 7.2%. Canadian Natural Resources pays an annual dividend of $1.66 per share and has a dividend yield of 4.4%. Birchcliff Energy pays out 272.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Canadian Natural Resources pays out 66.1% of its earnings in the form of a dividend.
Summary
Canadian Natural Resources beats Birchcliff Energy on 13 of the 16 factors compared between the two stocks.
About Birchcliff Energy
Birchcliff Energy Ltd., an intermediate oil and natural gas company, explores for, develops, and produces natural gas, light oil, condensate, and other natural gas liquids in Western Canada. The company holds interests in the areas of Montney/Doig Resource Play, including the Pouce Coupe and Gordondale properties in Alberta. Birchcliff Energy Ltd. was founded in 2004 and is headquartered in Calgary, Canada.
About Canadian Natural Resources
Canadian Natural Resources Limited acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs). The company offers light and medium crude oil, primary heavy crude oil, Pelican Lake heavy crude oil, bitumen (thermal oil), and synthetic crude oil (SCO). The company’s midstream assets include two pipeline systems; and a 50% working interest in an 84-megawatt cogeneration plant at Primrose. It operates primarily in Western Canada; the United Kingdom portion of the North Sea; and Offshore Africa. The company was formerly known as AEX Minerals Corporation and changed its name to Canadian Natural Resources Limited in December 1975. Canadian Natural Resources Limited was incorporated in 1973 and is headquartered in Calgary, Canada.
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