Financial Survey: Canadian Natural Resources (NYSE:CNQ) & Permex Petroleum (OTCMKTS:OILCF)

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

Profitability

This table compares Canadian Natural Resources and Permex Petroleum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian Natural Resources	24.48%	17.84%	8.55%
Permex Petroleum	N/A	N/A	N/A

Institutional & Insider Ownership

74.0% of Canadian Natural Resources shares are held by institutional investors. Comparatively, 9.5% of Permex Petroleum shares are held by institutional investors. 5.0% of Canadian Natural Resources shares are held 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 & Earnings

This table compares Canadian Natural Resources and Permex Petroleum”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	$31.61 billion	2.83	$7.74 billion	$3.69	11.63
Permex Petroleum	$120,000.00	14.99	-$3.99 million	($10.29)	-0.32

Canadian Natural Resources has higher revenue and earnings than Permex Petroleum. Permex Petroleum 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.

Analyst Ratings

This is a summary of current recommendations and price targets for Canadian Natural Resources and Permex Petroleum, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Natural Resources	0	6	6	0	2.50
Permex Petroleum	0	0	0	0	0.00

Canadian Natural Resources currently has a consensus target price of $57.00, indicating a potential upside of 32.77%. Given Canadian Natural Resources’ stronger consensus rating and higher possible upside, analysts plainly believe Canadian Natural Resources is more favorable than Permex Petroleum.

Risk and Volatility

Canadian Natural Resources has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Permex Petroleum has a beta of 2.62, meaning that its stock price is 162% more volatile than the S&P 500.

Summary

Canadian Natural Resources beats Permex Petroleum on 12 of the 14 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 Permex Petroleum

Permex Petroleum Corporation, a junior oil and gas company, engages in the acquisition, development, and production of oil and gas properties in the United States. The company holds interests in the Pittcock North property, Pittcock South property, Windy Jones property, and Mary Bullard property located in Stonewall County. It also holds interests in the West Henshaw property located in Eddy County, New Mexico; Oxy Yates property located in Eddy County; and Breedlove B Clearfork property located in Martin Country, Texas. In addition, the company has royalty interests in the Permian Basin of West Texas and southeast New Mexico. Permex Petroleum Corporation was incorporated in 2017 and is headquartered in Dallas, Texas.