Coterra Energy (NYSE:CTRA) versus HighPeak Energy (NASDAQ:HPK) Head-To-Head Analysis

HighPeak Energy (NASDAQ:HPK) and Coterra Energy (NYSE:CTRA) are both energy companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Earnings & Valuation

This table compares HighPeak Energy and Coterra Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HighPeak Energy	$1.07 billion	0.65	$95.07 million	$0.36	15.39
Coterra Energy	$7.65 billion	3.07	$1.72 billion	$2.28	13.55

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

Profitability

This table compares HighPeak Energy and Coterra Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HighPeak Energy	6.03%	4.23%	2.21%
Coterra Energy	22.46%	10.43%	6.33%

Dividends

HighPeak Energy pays an annual dividend of $0.16 per share and has a dividend yield of 2.9%. Coterra Energy pays an annual dividend of $0.88 per share and has a dividend yield of 2.8%. HighPeak Energy pays out 44.4% of its earnings in the form of a dividend. Coterra Energy pays out 38.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. HighPeak Energy has raised its dividend for 1 consecutive years and Coterra Energy has raised its dividend for 4 consecutive years.

Volatility & Risk

HighPeak Energy has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Coterra Energy has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500.

Insider & Institutional Ownership

24.1% of HighPeak Energy shares are held by institutional investors. Comparatively, 87.9% of Coterra Energy shares are held by institutional investors. 77.5% of HighPeak Energy shares are held by company insiders. Comparatively, 1.5% of Coterra Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for HighPeak Energy and Coterra Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HighPeak Energy	3	1	0	1	1.80
Coterra Energy	1	6	16	0	2.65

HighPeak Energy presently has a consensus price target of $11.67, suggesting a potential upside of 110.59%. Coterra Energy has a consensus price target of $33.62, suggesting a potential upside of 8.83%. Given HighPeak Energy’s higher probable upside, research analysts clearly believe HighPeak Energy is more favorable than Coterra Energy.

Summary

Coterra Energy beats HighPeak Energy on 12 of the 18 factors compared between the two stocks.

About HighPeak Energy

HighPeak Energy, Inc., an independent oil and natural gas company, engages in the exploration, development, and production of crude oil, natural gas, and natural gas liquids reserves in the Permian Basin in West Texas and Eastern New Mexico. The company was incorporated in 2019 and is headquartered in Fort Worth, Texas.

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.