Chord Energy (NASDAQ:CHRD – Get Free Report) and APA (NASDAQ:APA – Get Free Report) are both mid-cap energy companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.
Volatility & Risk
Chord Energy has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, APA has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations for Chord Energy and APA, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Chord Energy | 1 | 1 | 10 | 1 | 2.85 |
APA | 3 | 14 | 3 | 0 | 2.00 |
Insider & Institutional Ownership
97.8% of Chord Energy shares are held by institutional investors. Comparatively, 83.0% of APA shares are held by institutional investors. 0.7% of Chord Energy shares are held by insiders. Comparatively, 0.7% of APA shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Dividends
Chord Energy pays an annual dividend of $5.20 per share and has a dividend yield of 5.0%. APA pays an annual dividend of $1.00 per share and has a dividend yield of 4.1%. Chord Energy pays out 132.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. APA pays out 33.4% of its earnings in the form of a dividend. Chord Energy has increased its dividend for 1 consecutive years. Chord Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation and Earnings
This table compares Chord Energy and APA”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Chord Energy | $5.25 billion | 1.14 | $848.63 million | $3.93 | 26.60 |
APA | $10.06 billion | 0.88 | $804.00 million | $2.99 | 8.26 |
Chord Energy has higher earnings, but lower revenue than APA. APA is trading at a lower price-to-earnings ratio than Chord Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Chord Energy and APA’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Chord Energy | 5.02% | 9.02% | 5.97% |
APA | 10.53% | 20.98% | 7.21% |
Summary
Chord Energy beats APA on 12 of the 18 factors compared between the two stocks.
About Chord Energy
Chord Energy Corporation operates as an independent exploration and production company in the United States. It acquires, explores, develops, and produces crude oil, natural gas, and natural gas liquids in the Williston Basin. The company sells its products to refiners, marketers, and other purchasers that have access to nearby pipeline and rail facilities. The company was formerly known as Oasis Petroleum Inc. and changed its name to Chord Energy Corporation in July 2022. Chord Energy Corporation was founded in 2007 and is headquartered in Houston, Texas.
About APA
APA Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids. It has oil and gas operations in the United States, Egypt, and North Sea. The company also has exploration and appraisal activities in Suriname, as well as holds interests in projects located in Uruguay and internationally. APA Corporation was incorporated in 1954 and is headquartered in Houston, Texas.
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