Pioneer Natural Resources (NYSE: CVE) and Cenovus Energy (NYSE:CVE) are both large-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.
Valuation & Earnings
This table compares Pioneer Natural Resources and Cenovus Energy’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Pioneer Natural Resources||$5.46 billion||5.29||$833.00 million||$2.16||78.34|
|Cenovus Energy||$13.14 billion||0.84||$2.60 billion||($0.02)||-449.00|
Cenovus Energy has higher revenue and earnings than Pioneer Natural Resources. Cenovus Energy is trading at a lower price-to-earnings ratio than Pioneer Natural Resources, indicating that it is currently the more affordable of the two stocks.
This table compares Pioneer Natural Resources and Cenovus Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pioneer Natural Resources||12.23%||7.29%||4.78%|
Volatility & Risk
Pioneer Natural Resources has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Cenovus Energy has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Pioneer Natural Resources and Cenovus Energy, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pioneer Natural Resources||0||2||26||1||2.97|
Pioneer Natural Resources presently has a consensus price target of $233.31, indicating a potential upside of 37.87%. Cenovus Energy has a consensus price target of $14.70, indicating a potential upside of 63.70%. Given Cenovus Energy’s higher possible upside, analysts clearly believe Cenovus Energy is more favorable than Pioneer Natural Resources.
Institutional and Insider Ownership
88.8% of Pioneer Natural Resources shares are held by institutional investors. Comparatively, 74.6% of Cenovus Energy shares are held by institutional investors. 0.9% of Pioneer Natural Resources shares are held by company 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.
Pioneer Natural Resources pays an annual dividend of $0.32 per share and has a dividend yield of 0.2%. Cenovus Energy pays an annual dividend of $0.15 per share and has a dividend yield of 1.7%. Pioneer Natural Resources pays out 14.8% of its earnings in the form of a dividend. Cenovus Energy pays out -750.0% 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. Cenovus Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.
Pioneer Natural Resources beats Cenovus Energy on 12 of the 17 factors compared between the two stocks.
Pioneer Natural Resources Company Profile
Pioneer Natural Resources Company operates as an independent oil and gas exploration and production company in the United States. The company explores for, develops, and produces oil, natural gas liquids (NGLs), and gas. It has operations primarily in the Permian Basin in West Texas, the Eagle Ford Shale play in South Texas, the Raton field in southeast Colorado, and the West Panhandle field in the Texas Panhandle. As of December 31, 2017, the company had proved undeveloped reserves and proved developed reserves of approximately 45 million barrels of oil, 22 million barrels of NGLs, and 291 billion cubic feet of gas; and owned interests in 10 gas processing plants and 4 treating facilities. Pioneer Natural Resources Company is headquartered in Irving, Texas.
Cenovus Energy Company Profile
Cenovus Energy Inc., together with its subsidiaries, develops, produces, and markets crude oil, natural gas liquids, and natural gas in Canada and the United States. The company's Oil Sands segment develops and produces bitumen and natural gas in northeast Alberta. This segment's bitumen assets include Foster Creek, Christina Lake, and Narrows Lake, as well as projects in the early stages of development, such as Telephone Lake. This segment also holds the Athabasca natural gas assets. Its Deep Basin segment holds assets primarily located in Elmworth-Wapiti, Kaybob-Edson, and Clearwater operating areas of British Columbia and Alberta, and include interests in natural gas processing facilities. The company's Refining and Marketing segment transports, sells, and refines crude oil into petroleum and chemical products. This segment owns a 50% interest ownership in two refineries in the United States; owns and operates a crude-by-rail terminal in Alberta; and markets third-party purchases and sales of product. Cenovus Energy Inc. is headquartered in Calgary, Canada.
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