Contrasting Chesapeake Energy (EXE) & Its Peers

Chesapeake Energy (NASDAQ:EXEGet Free Report) is one of 286 public companies in the “Crude petroleum & natural gas” industry, but how does it contrast to its rivals? We will compare Chesapeake Energy to related businesses based on the strength of its valuation, dividends, risk, analyst recommendations, institutional ownership, earnings and profitability.

Dividends

Chesapeake Energy pays an annual dividend of $2.30 per share and has a dividend yield of 2.7%. Chesapeake Energy pays out 142.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Crude petroleum & natural gas” companies pay a dividend yield of 11.0% and pay out 120.2% of their earnings in the form of a dividend. Chesapeake Energy lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Volatility & Risk

Chesapeake Energy has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, Chesapeake Energy’s rivals have a beta of -13.27, indicating that their average share price is 1,427% less volatile than the S&P 500.

Earnings & Valuation

This table compares Chesapeake Energy and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Chesapeake Energy $8.72 billion $2.42 billion 51.64
Chesapeake Energy Competitors $12.35 billion $1.07 billion -602.70

Chesapeake Energy’s rivals have higher revenue, but lower earnings than Chesapeake Energy. Chesapeake Energy is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Chesapeake Energy and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chesapeake Energy 6.07% 2.74% 2.08%
Chesapeake Energy Competitors -3.61% 7.68% 6.82%

Institutional and Insider Ownership

97.9% of Chesapeake Energy shares are owned by institutional investors. Comparatively, 53.3% of shares of all “Crude petroleum & natural gas” companies are owned by institutional investors. 58.0% of Chesapeake Energy shares are owned by company insiders. Comparatively, 9.9% of shares of all “Crude petroleum & natural gas” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Chesapeake Energy and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chesapeake Energy 0 2 3 1 2.83
Chesapeake Energy Competitors 2147 11590 16189 623 2.50

Chesapeake Energy currently has a consensus price target of $99.20, suggesting a potential upside of 18.58%. As a group, “Crude petroleum & natural gas” companies have a potential upside of 28.90%. Given Chesapeake Energy’s rivals higher possible upside, analysts plainly believe Chesapeake Energy has less favorable growth aspects than its rivals.

Summary

Chesapeake Energy beats its rivals on 8 of the 15 factors compared.

About Chesapeake Energy

(Get Free Report)

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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