Analyzing Continental Resources (CLR) and Petroquest Energy (PQ)

Share on StockTwits

Continental Resources (NYSE: PQ) and Petroquest Energy (NYSE:PQ) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.

Volatility and Risk

Continental Resources has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Petroquest Energy has a beta of 2.21, indicating that its share price is 121% more volatile than the S&P 500.

Valuation & Earnings

This table compares Continental Resources and Petroquest Energy’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Continental Resources $3.12 billion 7.31 $789.44 million $0.51 118.90
Petroquest Energy $108.29 million 0.14 -$6.63 million ($0.55) -1.05

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

Profitability

This table compares Continental Resources and Petroquest Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Continental Resources 32.80% 14.01% 4.98%
Petroquest Energy -6.13% N/A -4.26%

Insider & Institutional Ownership

22.5% of Continental Resources shares are held by institutional investors. Comparatively, 39.1% of Petroquest Energy shares are held by institutional investors. 76.8% of Continental Resources shares are held by insiders. Comparatively, 8.8% of Petroquest Energy shares are held 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.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Continental Resources and Petroquest Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Continental Resources 0 10 20 0 2.67
Petroquest Energy 0 2 0 0 2.00

Continental Resources currently has a consensus price target of $69.63, suggesting a potential upside of 14.83%. Petroquest Energy has a consensus price target of $1.83, suggesting a potential upside of 216.62%. Given Petroquest Energy’s higher possible upside, analysts plainly believe Petroquest Energy is more favorable than Continental Resources.

Summary

Continental Resources beats Petroquest Energy on 11 of the 14 factors compared between the two stocks.

Continental Resources Company Profile

Continental Resources, Inc. explores for, develops, and produces crude oil and natural gas properties in the north, south, and east regions of the United States. The company sells its crude oil and natural gas production to energy marketing companies, crude oil refining companies, and natural gas gathering and processing companies. As of December 31, 2016, its estimated proved reserves were 1,331 million barrels of crude oil equivalent (MMBoe) with estimated proved developed reserves of 602 MMBoe. Continental Resources, Inc. was founded in 1967 and is based in Oklahoma City, Oklahoma.

Petroquest Energy Company Profile

PetroQuest Energy, Inc. engages in the development and exploration of oil and gas properties. Its projects include Arkoma Basin, Wyoming, Texas, and South Louisiana. The company was founded in 1985 and is headquartered in Lafayette, LA.

Receive News & Ratings for Continental Resources Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Continental Resources and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply