Critical Contrast: Chesapeake Energy (OTCMKTS:CHKAQ) and RWE Aktiengesellschaft (OTCMKTS:RWEOY)

RWE Aktiengesellschaft (OTCMKTS:RWEOY) and Chesapeake Energy (OTCMKTS:CHKAQ) are both utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.

Analyst Ratings

This is a summary of recent ratings and price targets for RWE Aktiengesellschaft and Chesapeake Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RWE Aktiengesellschaft	0	1	0	1	3.00
Chesapeake Energy	0	0	0	0	0.00

Risk and Volatility

RWE Aktiengesellschaft has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, Chesapeake Energy has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.

Institutional and Insider Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RWE Aktiengesellschaft	12.03%	8.16%	2.75%
Chesapeake Energy	-162.46%	N/A	-3.45%

Valuation and Earnings

This table compares RWE Aktiengesellschaft and Chesapeake Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RWE Aktiengesellschaft	$30.91 billion	0.64	$1.57 billion	$4.12	7.09
Chesapeake Energy	$8.49 billion	0.00	-$308.00 million	($54.00)	-0.06

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

Summary

RWE Aktiengesellschaft beats Chesapeake Energy on 10 of the 13 factors compared between the two stocks.

About RWE Aktiengesellschaft

RWE Aktiengesellschaft generates and supplies electricity from renewable and conventional sources in Germany, the United Kingdom, rest of Europe, North America, and internationally. It operates through five segments: Offshore Wind; Onshore Wind/Solar; Hydro/Biomass/Gas; Supply & Trading; and Coal/Nuclear. The company generates wind, hydro, solar, nuclear, gas, and biomass electricity. It also trades in electricity, gas, and energy commodities; operates gas storage facilities; and engages in battery storage activities. The company serves commercial, industrial, and corporate customers. RWE Aktiengesellschaft was founded in 1898 and is headquartered in Essen, Germany.

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.