Obsidian Energy (OTCMKTS:OBELF – Get Free Report) and Chesapeake Energy (NASDAQ:EXE – Get Free Report) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.
Risk & Volatility
Obsidian Energy has a beta of 2.47, meaning that its stock price is 147% more volatile than the S&P 500. Comparatively, Chesapeake Energy has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500.
Valuation and Earnings
This table compares Obsidian Energy and Chesapeake Energy”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Obsidian Energy | $220.00 million | 2.11 | -$576.07 million | $4.17 | 1.38 |
| Chesapeake Energy | $8.72 billion | 2.62 | $2.42 billion | $1.62 | 61.09 |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Obsidian Energy and Chesapeake Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Obsidian Energy | 0 | 0 | 0 | 0 | 0.00 |
| Chesapeake Energy | 0 | 3 | 4 | 1 | 2.75 |
Chesapeake Energy has a consensus target price of $101.71, suggesting a potential upside of 2.78%. Given Chesapeake Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Chesapeake Energy is more favorable than Obsidian Energy.
Profitability
This table compares Obsidian Energy and Chesapeake Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Obsidian Energy | 99.13% | 78.07% | 35.32% |
| Chesapeake Energy | 6.07% | 2.74% | 2.08% |
Institutional & Insider Ownership
0.0% of Obsidian Energy shares are held by institutional investors. Comparatively, 97.9% of Chesapeake Energy shares are held by institutional investors. 58.0% of Chesapeake Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Chesapeake Energy beats Obsidian Energy on 10 of the 15 factors compared between the two stocks.
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.
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.
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