Analyzing Vital Energy (NYSE:VTLE) & Canadian Natural Resources (NYSE:CNQ)

Vital Energy (NYSE:VTLE) and Canadian Natural Resources (NYSE:CNQ) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares Vital Energy and Canadian Natural Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vital Energy	25.09%	9.05%	4.65%
Canadian Natural Resources	18.45%	20.07%	10.51%

Earnings and Valuation

This table compares Vital Energy and Canadian Natural Resources”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vital Energy	$1.86 billion	0.67	$695.08 million	$14.28	2.29
Canadian Natural Resources	$41.12 billion	1.62	$6.10 billion	$2.57	12.28

Canadian Natural Resources has higher revenue and earnings than Vital Energy. Vital Energy is trading at a lower price-to-earnings ratio than Canadian Natural Resources, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

86.5% of Vital Energy shares are held by institutional investors. Comparatively, 74.0% of Canadian Natural Resources shares are held by institutional investors. 1.2% of Vital Energy shares are held by insiders. Comparatively, 5.0% of Canadian Natural Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Vital Energy and Canadian Natural Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vital Energy	2	6	3	0	2.09
Canadian Natural Resources	0	4	0	0	2.00

Vital Energy presently has a consensus target price of $46.00, indicating a potential upside of 40.42%. Canadian Natural Resources has a consensus target price of $51.00, indicating a potential upside of 61.55%. Given Canadian Natural Resources’ higher probable upside, analysts plainly believe Canadian Natural Resources is more favorable than Vital Energy.

Risk and Volatility

Vital Energy has a beta of 3.19, suggesting that its stock price is 219% more volatile than the S&P 500. Comparatively, Canadian Natural Resources has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500.

Summary

Canadian Natural Resources beats Vital Energy on 8 of the 14 factors compared between the two stocks.

About Vital Energy

Vital Energy, Inc., an independent energy company, engages in the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas, the United States. The company was formerly known as Laredo Petroleum, Inc. and changed its name to Vital Energy, Inc. in January 2023. Vital Energy, Inc. was founded in 2006 and is headquartered in Tulsa, Oklahoma.

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.