Reviewing Carbon Natural Gas (CRBO) & Cenovus Energy (CVE)

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Cenovus Energy (NYSE:CVE) and Carbon Natural Gas (OTCMKTS:CRBO) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Cenovus Energy and Carbon Natural Gas, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cenovus Energy 0 8 7 0 2.47
Carbon Natural Gas 0 0 0 0 N/A

Cenovus Energy currently has a consensus target price of $14.00, suggesting a potential upside of 55.21%. Given Cenovus Energy’s higher probable upside, analysts plainly believe Cenovus Energy is more favorable than Carbon Natural Gas.

Valuation and Earnings

This table compares Cenovus Energy and Carbon Natural Gas’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cenovus Energy $16.08 billion 0.69 -$2.06 billion ($1.74) -5.18
Carbon Natural Gas $53.05 million 1.44 $8.40 million N/A N/A

Carbon Natural Gas has lower revenue, but higher earnings than Cenovus Energy.

Volatility & Risk

Cenovus Energy has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Carbon Natural Gas has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500.

Dividends

Cenovus Energy pays an annual dividend of $0.15 per share and has a dividend yield of 1.7%. Carbon Natural Gas does not pay a dividend. Cenovus Energy pays out -8.6% of its earnings in the form of a dividend.

Insider and Institutional Ownership

77.9% of Cenovus Energy shares are held by institutional investors. Comparatively, 6.3% of Carbon Natural Gas shares are held by institutional investors. 71.7% of Carbon Natural Gas 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.

Profitability

This table compares Cenovus Energy and Carbon Natural Gas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cenovus Energy -8.68% -11.69% -5.60%
Carbon Natural Gas 15.83% 25.77% 7.83%

Summary

Carbon Natural Gas beats Cenovus Energy on 8 of the 14 factors compared between the two stocks.

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 in northeast Alberta. This segment's bitumen assets include Foster Creek, Christina Lake, and Narrows Lake, as well as other 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.

Carbon Natural Gas Company Profile

Carbon Energy Corporation, an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids properties in the United States. It focuses on conventional and unconventional reservoirs, including shale, tight sand, and coalbed methane located in the Appalachian, Illinois, and Ventura Basins. As of December 31, 2017, it owned working interests in 2,600 net wells and royalty interests located in Kentucky, Ohio, Tennessee, and West Virginia, as well as had leasehold positions in approximately 189,000 net developed acres and approximately 222,400 net undeveloped acres located in the Appalachian basin. The company also owned working interests in 29 net coalbed methane wells in the Illinois Basin; had a leasehold position in approximately 1,900 net developed acres and approximately 58,000 net undeveloped acres. In addition, it owned working interests in 200 net wells; and had leasehold positions in approximately 2,300 net developed acres, as well as approximately 8,000 net undeveloped acres. The company was formerly known as Carbon Natural Gas Company and changed its name to Carbon Energy Corporation in June 2018. Carbon Energy Corporation is based in Denver, Colorado.

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