Contrasting Obsidian Energy (OTCMKTS:OBELF) & Chesapeake Energy (NASDAQ:EXE)

Chesapeake Energy (NASDAQ:EXE) and Obsidian Energy (OTCMKTS:OBELF) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Institutional and Insider Ownership

97.9% of Chesapeake Energy shares are held by institutional investors. Comparatively, 0.0% of Obsidian Energy shares are held by institutional investors. 0.2% of Chesapeake Energy 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.

Analyst Ratings

This is a breakdown of current ratings for Chesapeake Energy and Obsidian Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chesapeake Energy	0	3	4	1	2.75
Obsidian Energy	0	0	0	0	0.00

Chesapeake Energy presently has a consensus price target of $101.71, suggesting a potential upside of 2.86%. Given Chesapeake Energy’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Chesapeake Energy is more favorable than Obsidian Energy.

Valuation & Earnings

This table compares Chesapeake Energy and Obsidian Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chesapeake Energy	$8.72 billion	2.62	$2.42 billion	$1.62	61.04
Obsidian Energy	$220.00 million	2.05	-$576.07 million	$4.17	1.34

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

Volatility & Risk

Chesapeake Energy has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500. Comparatively, Obsidian Energy has a beta of 2.47, suggesting that its stock price is 147% more volatile than the S&P 500.

Profitability

This table compares Chesapeake Energy and Obsidian Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chesapeake Energy	6.07%	2.74%	2.08%
Obsidian Energy	99.13%	78.07%	35.32%

Summary

Chesapeake Energy beats Obsidian Energy on 10 of the 15 factors compared between the two stocks.

About Chesapeake Energy

Expand Energy Corporation is an independent natural gas producer principally in the United States. Expand Energy Corporation, formerly known as Chesapeake Energy Corporation, is based in OKLAHOMA CITY.

About Obsidian Energy

Obsidian Energy Ltd. is an exploration and production company. The firm engages in exploring, developing, and holds interests in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin directly and through investments in securities of subsidiaries holding such interests. Its property portfolio includes Cardium, Viking, and Peace River. The company was founded on December 27, 1979 and is headquartered in Calgary, Canada.