Financial Analysis: Paradigm Oil and Gas (OTCMKTS:PDGO) versus Canadian Natural Resources (NYSE:CNQ)

Canadian Natural Resources (NYSE:CNQ) and Paradigm Oil and Gas (OTCMKTS:PDGO) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Risk and Volatility

Canadian Natural Resources has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Paradigm Oil and Gas has a beta of -0.34, suggesting that its share price is 134% less volatile than the S&P 500.

Profitability

This table compares Canadian Natural Resources and Paradigm Oil and Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian Natural Resources	16.92%	20.90%	10.37%
Paradigm Oil and Gas	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Canadian Natural Resources and Paradigm Oil and Gas, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Natural Resources	0	2	4	0	2.67
Paradigm Oil and Gas	0	0	0	0	0.00

Canadian Natural Resources presently has a consensus target price of $63.00, indicating a potential upside of 100.65%. Given Canadian Natural Resources’ stronger consensus rating and higher possible upside, research analysts clearly believe Canadian Natural Resources is more favorable than Paradigm Oil and Gas.

Insider & Institutional Ownership

74.0% of Canadian Natural Resources shares are owned by institutional investors. 5.0% of Canadian Natural Resources shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Canadian Natural Resources and Paradigm Oil and Gas”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canadian Natural Resources	$30.30 billion	2.17	$4.46 billion	$2.55	12.31
Paradigm Oil and Gas	N/A	N/A	-$1.66 million	N/A	N/A

Canadian Natural Resources has higher revenue and earnings than Paradigm Oil and Gas.

Summary

Canadian Natural Resources beats Paradigm Oil and Gas on 11 of the 11 factors compared between the two stocks.

About Canadian Natural Resources

Canadian Natural Resources Limited acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs). The company offers light and medium crude oil, primary heavy crude oil, Pelican Lake heavy crude oil, bitumen (thermal oil), and synthetic crude oil (SCO). The company’s midstream assets include two pipeline systems; and a 50% working interest in an 84-megawatt cogeneration plant at Primrose. It operates primarily in Western Canada; the United Kingdom portion of the North Sea; and Offshore Africa. The company was formerly known as AEX Minerals Corporation and changed its name to Canadian Natural Resources Limited in December 1975. Canadian Natural Resources Limited was incorporated in 1973 and is headquartered in Calgary, Canada.

About Paradigm Oil and Gas

Paradigm Oil and Gas, Inc., an exploration stage company, engages in the acquisition, exploration, development, and operation of oil and gas properties. It holds interests in 4 oil and gas leases covering approximately 934 net mineral acres located in the Wichita and Navarro counties of Texas. The company is headquartered in Indian Rocks Beach, Florida.