Critical Contrast: Chesapeake Energy (NASDAQ:CHK) versus HKN (OTCMKTS:HKNI)

Chesapeake Energy (NASDAQ:CHK) and HKN (OTCMKTS:HKNI) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Institutional and Insider Ownership

97.9% of Chesapeake Energy shares are held by institutional investors. 0.1% of Chesapeake Energy shares are held by insiders. Comparatively, 0.1% of HKN shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Chesapeake Energy and HKN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chesapeake Energy	27.74%	6.74%	4.87%
HKN	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and recommmendations for Chesapeake Energy and HKN, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chesapeake Energy	0	7	6	0	2.46
HKN	0	0	0	0	N/A

Chesapeake Energy presently has a consensus target price of $103.58, suggesting a potential upside of 17.16%. Given Chesapeake Energy’s higher probable upside, research analysts plainly believe Chesapeake Energy is more favorable than HKN.

Earnings and Valuation

This table compares Chesapeake Energy and HKN’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chesapeake Energy	$7.78 billion	1.49	$2.42 billion	$16.84	5.25
HKN	N/A	N/A	N/A	N/A	N/A

Chesapeake Energy has higher revenue and earnings than HKN.

Summary

Chesapeake Energy beats HKN on 8 of the 8 factors compared between the two stocks.

About Chesapeake Energy

Chesapeake Energy Corporation operates as an independent exploration and production company in the United States. It engages in acquisition, exploration, and development of properties to produce oil, natural gas, and natural gas liquids from underground reservoirs. The company holds interests in natural gas resource plays in the Marcellus Shale in the northern Appalachian Basin in Pennsylvania and the Haynesville/Bossier Shales in northwestern Louisiana. As of December 31, 2023, the company owns a portfolio of onshore U.S. unconventional natural gas assets, including interests in approximately 5,000 natural gas wells. Chesapeake Energy Corporation was founded in 1989 and is based in Oklahoma City, Oklahoma.

About HKN

HKN, Inc. operates as an independent energy company. The company owns an oilfield emulsion breaking technology that purifies oilfield emulsions by breaking and separating the emulsions into oil, water, and solids. It also holds non-operated oil and gas leases and mineral interests in properties located in the Bakken and Niobrara shale oil plays; and rights to acreage in the Permian Basin of Texas. The company was founded in 1973 and is based in Southlake, Texas.