CNX Resources (NYSE:CNX – Get Free Report) and Coterra Energy (NYSE:CTRA – Get Free Report) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.
Profitability
This table compares CNX Resources and Coterra Energy’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
CNX Resources | 9.70% | 8.93% | 4.13% |
Coterra Energy | 23.80% | 10.99% | 6.73% |
Volatility & Risk
CNX Resources has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, Coterra Energy has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500.
Earnings and Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
CNX Resources | $1.27 billion | 3.25 | -$90.49 million | $0.59 | 49.34 |
Coterra Energy | $5.46 billion | 3.37 | $1.12 billion | $2.09 | 11.54 |
Coterra Energy has higher revenue and earnings than CNX Resources. Coterra Energy is trading at a lower price-to-earnings ratio than CNX Resources, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations for CNX Resources and Coterra Energy, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
CNX Resources | 7 | 8 | 1 | 0 | 1.63 |
Coterra Energy | 0 | 4 | 14 | 0 | 2.78 |
CNX Resources presently has a consensus target price of $31.77, suggesting a potential upside of 9.12%. Coterra Energy has a consensus target price of $33.61, suggesting a potential upside of 39.38%. Given Coterra Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Coterra Energy is more favorable than CNX Resources.
Institutional and Insider Ownership
95.2% of CNX Resources shares are owned by institutional investors. Comparatively, 87.9% of Coterra Energy shares are owned by institutional investors. 3.1% of CNX Resources shares are owned by company insiders. Comparatively, 1.7% of Coterra Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Coterra Energy beats CNX Resources on 10 of the 14 factors compared between the two stocks.
About CNX Resources
CNX Resources Corporation, an independent natural gas and midstream company, engages in the acquisition, exploration, development, and production of natural gas properties in the Appalachian Basin. The company operates in two segments, Shale and Coalbed Methane (CBM). It produces and sells pipeline quality natural gas primarily for gas wholesalers. The company owns rights to extract natural gas from shale properties in Pennsylvania, West Virginia, and Ohio, as well as rights to extract natural gas from other shale and shallow oil and gas formations in Illinois, Indiana, New York, and Virginia. It also owns rights to extract CBM in Virginia, West Virginia, Pennsylvania, Ohio, Illinois, Indiana, and New Mexico. In addition, the company designs, builds, and operates natural gas gathering systems to move gas from the wellhead to interstate pipelines or other local sales points; owns and operates approximately 2,600 miles of natural gas gathering pipelines, as well as various natural gas processing facilities. It also offers turn-key solutions for water sourcing, delivery, and disposal for its natural gas operations and for third parties. The company was formerly known as CONSOL Energy Inc. and changed its name to CNX Resources Corporation in November 2017. CNX Resources Corporation was founded in 1860 and is headquartered in Canonsburg, Pennsylvania.
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.
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