Reviewing Sable Offshore (NYSE:SOC) & Chesapeake Energy (OTCMKTS:CHKAQ)

Sable Offshore (NYSE:SOC) and Chesapeake Energy (OTCMKTS:CHKAQ) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.

Earnings and Valuation

This table compares Sable Offshore and Chesapeake Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sable Offshore	N/A	N/A	-$32.18 million	N/A	N/A
Chesapeake Energy	$8.49 billion	0.00	-$308.00 million	($54.00)	-0.06

Sable Offshore has higher earnings, but lower revenue than Chesapeake Energy.

Analyst Ratings

This is a summary of current ratings and price targets for Sable Offshore and Chesapeake Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sable Offshore	1	0	4	0	2.60
Chesapeake Energy	0	0	0	0	0.00

Sable Offshore presently has a consensus target price of $25.00, suggesting a potential upside of 2.88%. Given Sable Offshore’s stronger consensus rating and higher possible upside, analysts plainly believe Sable Offshore is more favorable than Chesapeake Energy.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sable Offshore	N/A	-319.58%	-39.11%
Chesapeake Energy	-162.46%	N/A	-3.45%

Volatility and Risk

Sable Offshore has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500. Comparatively, Chesapeake Energy has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Insider and Institutional Ownership

26.2% of Sable Offshore shares are held by institutional investors. Comparatively, 2.0% of Chesapeake Energy shares are held by institutional investors. 14.3% of Sable Offshore shares are held by insiders. Comparatively, 1.1% of Chesapeake Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Sable Offshore beats Chesapeake Energy on 7 of the 11 factors compared between the two stocks.

About Sable Offshore

Sable Offshore Corp. engages in the oil and gas exploration and development activities in the United States. The company operates through three platforms located in federal waters offshore California. It owns and operates 16 federal leases across approximately 76,000 acres and subsea pipelines, which transport crude oil, natural gas, and produced water from the platforms to the onshore processing facilities. The company was formerly known as Flame Acquisition Corp. and changed its name to Sable Offshore Corp. in February 2024. Sable Offshore Corp. was incorporated in 2020 and is based in Houston, Texas.

About Chesapeake Energy

Chesapeake Energy Corp. is an independent exploration and production company, which engages in acquisition, exploration and development of properties for the production of oil, natural gas and natural gas liquids from underground reservoirs. It focuses on projects located in Louisiana, Ohio, Oklahoma, Pennsylvania, Texas, and Wyoming. The company was founded by Aubrey K. McClendon and Tom L. Ward on May 18, 1989 and is headquartered in Oklahoma City, OK.