Critical Analysis: Chesapeake Granite Wash Trust (OTCMKTS:CHKR) & Whiting Petroleum (NYSE:WLL)

Chesapeake Granite Wash Trust (OTCMKTS:CHKRGet Rating) and Whiting Petroleum (NYSE:WLLGet Rating) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Valuation and Earnings

This table compares Chesapeake Granite Wash Trust and Whiting Petroleum’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chesapeake Granite Wash Trust $8.70 million N/A $6.54 million N/A N/A
Whiting Petroleum $1.53 billion 2.37 $427.91 million $9.82 9.43

Whiting Petroleum has higher revenue and earnings than Chesapeake Granite Wash Trust.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Chesapeake Granite Wash Trust and Whiting Petroleum, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chesapeake Granite Wash Trust 0 0 0 0 N/A
Whiting Petroleum 0 2 4 0 2.67

Whiting Petroleum has a consensus target price of $100.83, suggesting a potential upside of 8.86%. Given Whiting Petroleum’s higher possible upside, analysts plainly believe Whiting Petroleum is more favorable than Chesapeake Granite Wash Trust.

Profitability

This table compares Chesapeake Granite Wash Trust and Whiting Petroleum’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chesapeake Granite Wash Trust 81.90% 82.38% 82.38%
Whiting Petroleum 22.33% 42.37% 25.55%

Institutional and Insider Ownership

96.8% of Whiting Petroleum shares are owned by institutional investors. 0.1% of Whiting Petroleum shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Chesapeake Granite Wash Trust has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Whiting Petroleum has a beta of 1.89, indicating that its stock price is 89% more volatile than the S&P 500.

Dividends

Chesapeake Granite Wash Trust pays an annual dividend of $0.22 per share and has a dividend yield of 17.5%. Whiting Petroleum pays an annual dividend of $1.00 per share and has a dividend yield of 1.1%. Whiting Petroleum pays out 10.2% of its earnings in the form of a dividend.

Summary

Whiting Petroleum beats Chesapeake Granite Wash Trust on 7 of the 12 factors compared between the two stocks.

About Chesapeake Granite Wash Trust (Get Rating)

Chesapeake Granite Wash Trust owns royalty interests in oil, natural gas liquids, and natural gas properties located in the Colony Granite Wash play in Washita County in the Anadarko Basin of Western Oklahoma. The company has royalty interests in 69 producing wells and 118 development wells, and in approximately 26,400 net acres of area. As of December 31, 2021, it had 3,867 thousand barrels of oil equivalent of proved developed reserves. Chesapeake Granite Wash Trust was incorporated in 2011 and is based in Houston, Texas.

About Whiting Petroleum (Get Rating)

Whiting Petroleum Corporation, an independent oil and gas company, engages in the acquisition, development, and production of crude oil, natural gas, and natural gas liquids primarily in the Rocky Mountains region of the United States. The company sells its oil and gas production to end users, marketers, and other purchasers. As of December 31, 2021, it had interests in 1,917 net productive wells on approximately 539,900 net developed acres, as well as total estimated proved reserves of 326.0 million barrels of oil equivalent. The company was founded in 1980 and is headquartered in Denver, Colorado.

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