Contrasting Gibson Energy (OTCMKTS:GBNXF) & Cenovus Energy (NYSE:CVE)

Cenovus Energy (NYSE:CVE) and Gibson Energy (OTCMKTS:GBNXF) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.

Risk & Volatility

Cenovus Energy has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Gibson Energy has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.

Dividends

Cenovus Energy pays an annual dividend of $0.58 per share and has a dividend yield of 4.0%. Gibson Energy pays an annual dividend of $1.20 per share and has a dividend yield of 6.9%. Cenovus Energy pays out 54.2% of its earnings in the form of a dividend. Gibson Energy pays out 169.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cenovus Energy has increased its dividend for 4 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings for Cenovus Energy and Gibson Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cenovus Energy	0	4	4	1	2.67
Gibson Energy	0	3	1	1	2.60

Cenovus Energy presently has a consensus price target of $25.75, indicating a potential upside of 75.95%. Given Cenovus Energy’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Cenovus Energy is more favorable than Gibson Energy.

Earnings & Valuation

This table compares Cenovus Energy and Gibson Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cenovus Energy	$39.62 billion	0.67	$2.29 billion	$1.07	13.68
Gibson Energy	$8.60 billion	0.33	$111.06 million	$0.71	24.66

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

Profitability

This table compares Cenovus Energy and Gibson Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cenovus Energy	5.22%	9.56%	5.04%
Gibson Energy	1.44%	16.96%	3.31%

Institutional and Insider Ownership

51.2% of Cenovus Energy shares are held by institutional investors. Comparatively, 0.2% of Gibson Energy shares are held by institutional investors. 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.

Summary

Cenovus Energy beats Gibson Energy on 13 of the 16 factors compared between the two stocks.

About Cenovus Energy

Cenovus Energy Inc., together with its subsidiaries, develops, produces, refines, transports, and markets crude oil, natural gas, and refined petroleum products in Canada and internationally. The company operates through Oil Sands, Conventional, Offshore, Canadian Refining, and U.S. Refining segments. The Oil Sands segment develops and produces bitumen and heavy oil in northern Alberta and Saskatchewan. This segment assets include Foster Creek, Christina Lake, and Sunrise projects, as well as Lloydminster thermal and conventional heavy oil assets. The Conventional segment holds natural gas liquids and natural gas assets primarily located in Elmworth-Wapiti, Kaybob-Edson, Clearwater, and Rainbow Lake operating in Alberta and British Columbia, as well as interests in various natural gas processing facilities. The offshore segment engages in offshore operation, exploration, and development activities in China and the East Coast of Canada. The Canadian Refining segment owns and operates Lloydminster upgrading and asphalt refining complex, which converts heavy oil and bitumen into synthetic crude oil, diesel, asphalt, and other ancillary products, as well as Bruderheim crude-by-rail terminal and ethanol plants. The U.S. Refining segment refines crude oil to produce gasoline, diesel, jet fuel, asphalt, and other products. Cenovus Energy Inc. is headquartered in Calgary, Canada.

About Gibson Energy

Gibson Energy Inc., together with its subsidiaries, engages in the gathering, storage, optimization, processing, and marketing of liquids and refined products in Canada and the United States. It operates through Infrastructure and Marketing segments. The Infrastructure segment operates a network of liquid infrastructure assets that include oil terminals, rail loading and unloading facilities, gathering pipelines, a crude oil processing facility, and other terminals. The Marketing segment purchases, sells, stores, and optimizes hydrocarbon products, including crude oil, natural gas liquids, road asphalt, roofing flux, frac oils, light and heavy straight run distillates, vacuum gas oil, and an oil-based mud product. It serves producers, refiners, marketers, and integrated companies, as well as exploration and production companies. The company was formerly known as Gibson Energy Holdings ULC and changed its name to Gibson Energy Inc. in April 2011. Gibson Energy Inc. was founded in 1953 and is headquartered in Calgary, Canada.