Financial Contrast: Continental Resources (NYSE:CLR) versus Coterra Energy (NYSE:CTRA)

Continental Resources (NYSE:CLRGet Rating) and Coterra Energy (NYSE:CTRAGet Rating) are both large-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.

Dividends

Continental Resources pays an annual dividend of $1.12 per share and has a dividend yield of 1.6%. Coterra Energy pays an annual dividend of $0.60 per share and has a dividend yield of 2.0%. Continental Resources pays out 20.4% of its earnings in the form of a dividend. Coterra Energy pays out 27.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Continental Resources has increased its dividend for 2 consecutive years.

Risk & Volatility

Continental Resources has a beta of 2.62, suggesting that its stock price is 162% more volatile than the S&P 500. Comparatively, Coterra Energy has a beta of -0.03, suggesting that its stock price is 103% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Continental Resources and Coterra Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Continental Resources 3 9 3 0 2.00
Coterra Energy 1 10 6 0 2.29

Continental Resources currently has a consensus price target of $68.81, suggesting a potential downside of 0.12%. Coterra Energy has a consensus price target of $33.07, suggesting a potential upside of 8.10%. Given Coterra Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Coterra Energy is more favorable than Continental Resources.

Earnings and Valuation

This table compares Continental Resources and Coterra Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Continental Resources $5.72 billion 4.37 $1.66 billion $5.49 12.55
Coterra Energy $3.45 billion 7.15 $1.16 billion $2.15 14.23

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

Insider and Institutional Ownership

13.4% of Continental Resources shares are held by institutional investors. Comparatively, 93.4% of Coterra Energy shares are held by institutional investors. 58.6% of Continental Resources shares are held by company insiders. Comparatively, 1.6% of Coterra Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Continental Resources and Coterra Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Continental Resources 31.63% 31.43% 13.87%
Coterra Energy 35.13% 24.79% 14.04%

Summary

Coterra Energy beats Continental Resources on 9 of the 17 factors compared between the two stocks.

About Continental Resources

(Get Rating)

Continental Resources, Inc. explores for, develops, produces, and manages crude oil, natural gas, and related products primarily in the north, south, and east regions of the United States. The company sells its crude oil and natural gas production to energy marketing companies, crude oil refining companies, and natural gas gathering and processing companies. As of December 31, 2021, its proved reserves were 1,645 million barrels of crude oil equivalent (MMBoe) with proved developed reserves of 908 MMBoe. The company was founded in 1967 and is headquartered in Oklahoma City, Oklahoma.

About Coterra Energy

(Get Rating)

Coterra Energy Inc., an independent oil and gas company, engages in the development, exploration and production of oil, natural gas, and natural gas liquids in the United States. It primarily focuses on the Marcellus Shale with approximately 177,000 net acres in the dry gas window of the play located in Susquehanna County, Pennsylvania. The company also holds Permian Basin properties with approximately 306,000 net acres; and Anadarko Basin properties located in Oklahoma with approximately 182,000 net acres. In addition, it operates natural gas and saltwater disposal gathering systems in Texas. The company sells its natural gas to industrial customers, local distribution companies, oil and gas marketers, major energy companies, pipeline companies, and power generation facilities. As of December 31, 2021, it had proved reserves of approximately 2,892,582 thousand barrels of oil equivalent, which include 189,429 thousand barrels of oil and other liquid hydrocarbons, 14,895 billion cubic feet of natural gas, and 220,615 thousand barrels of natural gas liquids. The company was incorporated in 1989 and is headquartered in Houston, Texas.

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