Head-To-Head Review: Coterra Energy (NYSE:CTRA) & Battalion Oil (NYSE:BATL)

Coterra Energy (NYSE:CTRA) and Battalion Oil (NYSE:BATL) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.

Volatility & Risk

Coterra Energy has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500. Comparatively, Battalion Oil has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Coterra Energy and Battalion Oil, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coterra Energy	0	2	13	0	2.87
Battalion Oil	0	1	0	0	2.00

Coterra Energy currently has a consensus price target of $32.20, suggesting a potential upside of 18.32%. Battalion Oil has a consensus price target of $18.60, suggesting a potential upside of 246.37%. Given Battalion Oil’s higher possible upside, analysts clearly believe Battalion Oil is more favorable than Coterra Energy.

Institutional & Insider Ownership

87.9% of Coterra Energy shares are owned by institutional investors. Comparatively, 86.0% of Battalion Oil shares are owned by institutional investors. 1.7% of Coterra Energy shares are owned by insiders. Comparatively, 56.9% of Battalion Oil shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Coterra Energy	27.48%	12.97%	8.23%
Battalion Oil	-1.38%	-32.62%	-5.57%

Valuation & Earnings

This table compares Coterra Energy and Battalion Oil’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coterra Energy	$5.91 billion	3.46	$1.63 billion	$2.14	12.72
Battalion Oil	$220.76 million	0.40	-$3.05 million	($0.94)	-5.71

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

Summary

Coterra Energy beats Battalion Oil on 11 of the 14 factors compared between the two stocks.

About Coterra Energy

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. The company's properties include the Marcellus Shale with approximately 186,000 net acres in the dry gas window of the play located in Susquehanna County, Pennsylvania; Permian Basin properties with approximately 296,000 net acres located in west Texas and southeast New Mexico; and Anadarko Basin properties with approximately 182,000 net acres located in Oklahoma. It also operates natural gas and saltwater gathering and disposal 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. Coterra Energy Inc. was incorporated in 1989 and is headquartered in Houston, Texas.

About Battalion Oil

Battalion Oil Corporation, an independent energy company, engages in the acquisition, production, exploration, and development of onshore oil and natural gas assets in the United States. It holds interests in the Delaware Basin located in the counties of Pecos, Reeves, Ward, and Winkler, Texas. The company was formerly known as Halcón Resources Corporation and changed its name to Battalion Oil Corporation in January 2020. Battalion Oil Corporation was founded in 1987 and is headquartered in Houston, Texas.