CNX Resources (NYSE:CNX – Get Free Report) and Obsidian Energy (OTCMKTS:OBELF – Get Free Report) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.
Valuation & Earnings
This table compares CNX Resources and Obsidian Energy”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
CNX Resources | $1.44 billion | 3.29 | -$90.49 million | ($0.68) | -46.75 |
Obsidian Energy | $220.00 million | 2.09 | -$576.07 million | $4.17 | 1.36 |
CNX Resources has higher revenue and earnings than Obsidian Energy. CNX Resources is trading at a lower price-to-earnings ratio than Obsidian Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
Net Margins | Return on Equity | Return on Assets | |
CNX Resources | -7.14% | 6.72% | 3.31% |
Obsidian Energy | 99.13% | 78.07% | 35.32% |
Risk and Volatility
CNX Resources has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Obsidian Energy has a beta of 2.47, indicating that its share price is 147% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations for CNX Resources and Obsidian Energy, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
CNX Resources | 8 | 6 | 1 | 0 | 1.53 |
Obsidian Energy | 0 | 0 | 0 | 0 | 0.00 |
CNX Resources presently has a consensus target price of $30.38, indicating a potential downside of 4.42%. Given CNX Resources’ stronger consensus rating and higher possible upside, equities research analysts clearly believe CNX Resources is more favorable than Obsidian Energy.
Institutional & Insider Ownership
95.2% of CNX Resources shares are held by institutional investors. Comparatively, 0.0% of Obsidian Energy shares are held by institutional investors. 3.1% of CNX Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
CNX Resources beats Obsidian Energy on 8 of the 14 factors compared between the two stocks.
About CNX Resources
CNX Resources Corporation, an independent natural gas and midstream company, engages in the acquisition, exploration, development, and production of natural gas properties in the Appalachian Basin. The company operates in two segments, Shale and Coalbed Methane (CBM). It produces and sells pipeline quality natural gas primarily for gas wholesalers. The company owns rights to extract natural gas from shale properties in Pennsylvania, West Virginia, and Ohio, as well as rights to extract natural gas from other shale and shallow oil and gas formations in Illinois, Indiana, New York, and Virginia. It also owns rights to extract CBM in Virginia, West Virginia, Pennsylvania, Ohio, Illinois, Indiana, and New Mexico. In addition, the company designs, builds, and operates natural gas gathering systems to move gas from the wellhead to interstate pipelines or other local sales points; owns and operates approximately 2,600 miles of natural gas gathering pipelines, as well as various natural gas processing facilities. It also offers turn-key solutions for water sourcing, delivery, and disposal for its natural gas operations and for third parties. The company was formerly known as CONSOL Energy Inc. and changed its name to CNX Resources Corporation in November 2017. CNX Resources Corporation was founded in 1860 and is headquartered in Canonsburg, Pennsylvania.
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.
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