Critical Contrast: Canadian Natural Resources (NYSE:CNQ) and Bonterra Energy (OTCMKTS:BNEFF)

Bonterra Energy (OTCMKTS:BNEFF) and Canadian Natural Resources (NYSE:CNQ) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for Bonterra Energy and Canadian Natural Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bonterra Energy	0	0	0	0	0.00
Canadian Natural Resources	0	2	4	1	2.86

Canadian Natural Resources has a consensus target price of $62.00, suggesting a potential upside of 95.74%. Given Canadian Natural Resources’ stronger consensus rating and higher possible upside, analysts plainly believe Canadian Natural Resources is more favorable than Bonterra Energy.

Valuation & Earnings

This table compares Bonterra Energy and Canadian Natural Resources”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bonterra Energy	$204.33 million	0.45	$7.45 million	($0.13)	-19.38
Canadian Natural Resources	$30.30 billion	2.18	$4.46 billion	$2.82	11.23

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

Risk and Volatility

Bonterra Energy has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, Canadian Natural Resources has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.

Insider and Institutional Ownership

0.3% of Bonterra Energy shares are owned by institutional investors. Comparatively, 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 endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Bonterra Energy and Canadian Natural Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bonterra Energy	-2.57%	-1.22%	-0.67%
Canadian Natural Resources	19.00%	19.67%	9.59%

Summary

Canadian Natural Resources beats Bonterra Energy on 14 of the 15 factors compared between the two stocks.

About Bonterra Energy

Bonterra Energy Corp., a conventional oil and gas company, engages in the development and production of oil and natural gas in Canada. Its principal properties include Pembina Cardium, a conventional oil field, at the Pembina and Willesden green fields located in central Alberta; and holds 100% interest in the Montney properties that consist of approximately 28,880 acres located in the north of Grand Prairie, Alberta. The company was incorporated in 2013 and is headquartered in Calgary, Canada.

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.