Head-To-Head Review: Canadian Natural Resources (NYSE:CNQ) and Riley Exploration Permian (NYSE:REPX)

Riley Exploration Permian (NYSE:REPX) and Canadian Natural Resources (NYSE:CNQ) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Institutional and Insider Ownership

58.9% of Riley Exploration Permian shares are held by institutional investors. Comparatively, 74.0% of Canadian Natural Resources shares are held by institutional investors. 3.9% of Riley Exploration Permian shares are held by company insiders. Comparatively, 5.0% of Canadian Natural Resources shares are held by company 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.

Earnings & Valuation

This table compares Riley Exploration Permian and Canadian Natural Resources”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Riley Exploration Permian	$407.32 million	1.75	$111.59 million	$5.64	5.87
Canadian Natural Resources	$41.12 billion	1.65	$6.10 billion	$2.57	12.54

Canadian Natural Resources has higher revenue and earnings than Riley Exploration Permian. Riley Exploration Permian 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.

Analyst Ratings

This is a breakdown of recent ratings for Riley Exploration Permian and Canadian Natural Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Riley Exploration Permian	0	0	1	0	3.00
Canadian Natural Resources	0	4	0	0	2.00

Riley Exploration Permian currently has a consensus price target of $45.00, suggesting a potential upside of 35.99%. Canadian Natural Resources has a consensus price target of $51.00, suggesting a potential upside of 58.29%. Given Canadian Natural Resources’ higher possible upside, analysts plainly believe Canadian Natural Resources is more favorable than Riley Exploration Permian.

Volatility & Risk

Riley Exploration Permian has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500. Comparatively, Canadian Natural Resources has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.

Dividends

Riley Exploration Permian pays an annual dividend of $1.52 per share and has a dividend yield of 4.6%. Canadian Natural Resources pays an annual dividend of $1.66 per share and has a dividend yield of 5.2%. Riley Exploration Permian pays out 27.0% of its earnings in the form of a dividend. Canadian Natural Resources pays out 64.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Riley Exploration Permian and Canadian Natural Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Riley Exploration Permian	28.48%	23.82%	11.31%
Canadian Natural Resources	18.45%	20.07%	10.51%

Summary

Riley Exploration Permian beats Canadian Natural Resources on 8 of the 15 factors compared between the two stocks.

About Riley Exploration Permian

Riley Exploration Permian, Inc., an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in Texas and New Mexico. The company's activities are primarily focused on the Northwest Shelf and Yeso trend of the Permian Basin. Its acreage is primarily located on contiguous blocks in Yoakum County, Texas; and Eddy County, New Mexico. Riley Exploration Permian, Inc. is headquartered in Oklahoma City, 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.