Crescent Point Energy (NYSE:CPG) and Cimarex Energy (NYSE:XEC) are both mid-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.
This table compares Crescent Point Energy and Cimarex Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Crescent Point Energy||-7.36%||2.38%||1.33%|
Crescent Point Energy pays an annual dividend of $0.28 per share and has a dividend yield of 6.6%. Cimarex Energy pays an annual dividend of $0.64 per share and has a dividend yield of 0.7%. Crescent Point Energy pays out 200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cimarex Energy pays out 13.8% of its earnings in the form of a dividend.
Risk and Volatility
Crescent Point Energy has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500. Comparatively, Cimarex Energy has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.
Institutional and Insider Ownership
38.7% of Crescent Point Energy shares are owned by institutional investors. Comparatively, 98.2% of Cimarex Energy shares are owned by institutional investors. 1.7% of Cimarex Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a summary of recent ratings and recommmendations for Crescent Point Energy and Cimarex Energy, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Crescent Point Energy||0||4||2||0||2.33|
Crescent Point Energy currently has a consensus target price of $16.25, suggesting a potential upside of 281.46%. Cimarex Energy has a consensus target price of $130.67, suggesting a potential upside of 44.67%. Given Crescent Point Energy’s higher probable upside, analysts clearly believe Crescent Point Energy is more favorable than Cimarex Energy.
Valuation and Earnings
This table compares Crescent Point Energy and Cimarex Energy’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Crescent Point Energy||$2.55 billion||0.92||-$95.65 million||$0.14||30.43|
|Cimarex Energy||$1.92 billion||4.50||$494.32 million||$4.65||19.42|
Cimarex Energy has lower revenue, but higher earnings than Crescent Point Energy. Cimarex Energy is trading at a lower price-to-earnings ratio than Crescent Point Energy, indicating that it is currently the more affordable of the two stocks.
Cimarex Energy beats Crescent Point Energy on 11 of the 16 factors compared between the two stocks.
Crescent Point Energy Company Profile
Crescent Point Energy Corp. acquires, explores, develops, and produces light and medium oil and natural gas properties in Western Canada and the United States. The company's crude oil and natural gas properties, and related assets are located in the provinces of Saskatchewan, Alberta, British Columbia, and Manitoba; and the states of North Dakota, Montana, and Utah. Crescent Point Energy Corp. is headquartered in Calgary, Canada..
Cimarex Energy Company Profile
Cimarex Energy Co. operates as an independent oil and gas exploration and production company primarily in Oklahoma, Texas, and New Mexico. As of December 31, 2017, it had a total proved oil and gas reserves of 3.35 trillion cubic feet equivalent (Tcfe) consisting of 1.61 trillion cubic feet of natural gas, 0.82 Tcfe of oil, and 0.92 Tcfe of natural gas liquids primarily located in the Mid-Continent and Permian Basin regions. The company also owned interests in 3,083 net productive oil and gas wells. Cimarex Energy Co. was founded in 2002 and is headquartered in Denver, Colorado.
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