Financial Contrast: PrimeEnergy Resources (NASDAQ:PNRG) versus Chesapeake Energy (OTCMKTS:CHKAQ)

Chesapeake Energy (OTCMKTS:CHKAQGet Free Report) and PrimeEnergy Resources (NASDAQ:PNRGGet Free Report) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Volatility & Risk

Chesapeake Energy has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, PrimeEnergy Resources has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500.

Earnings & Valuation

This table compares Chesapeake Energy and PrimeEnergy Resources’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chesapeake Energy $8.49 billion 0.00 -$308.00 million ($54.00) -0.06
PrimeEnergy Resources $123.12 million 1.58 $28.10 million $14.64 7.48

PrimeEnergy Resources has lower revenue, but higher earnings than Chesapeake Energy. Chesapeake Energy is trading at a lower price-to-earnings ratio than PrimeEnergy Resources, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Chesapeake Energy and PrimeEnergy Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chesapeake Energy -162.46% N/A -3.45%
PrimeEnergy Resources 26.50% 24.03% 13.59%

Analyst Ratings

This is a summary of recent recommendations for Chesapeake Energy and PrimeEnergy Resources, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chesapeake Energy 0 0 0 0 N/A
PrimeEnergy Resources 0 0 0 0 N/A

Institutional and Insider Ownership

2.0% of Chesapeake Energy shares are owned by institutional investors. 1.1% of Chesapeake Energy shares are owned by insiders. Comparatively, 61.1% of PrimeEnergy Resources shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

PrimeEnergy Resources beats Chesapeake Energy on 8 of the 11 factors compared between the two stocks.

About Chesapeake Energy

(Get Free Report)

Chesapeake Energy Corp. is an independent exploration and production company, which engages in acquisition, exploration and development of properties for the production of oil, natural gas and natural gas liquids from underground reservoirs. It focuses on projects located in Louisiana, Ohio, Oklahoma, Pennsylvania, Texas, and Wyoming. The company was founded by Aubrey K. McClendon and Tom L. Ward on May 18, 1989 and is headquartered in Oklahoma City, OK.

About PrimeEnergy Resources

(Get Free Report)

PrimeEnergy Resources Corporation, through its subsidiaries, engages in acquisition, development, and production of oil and natural gas properties in the United States. The company owns leasehold, mineral, and royalty interests in producing and non-producing oil and gas properties; and operates approximately 534 active wells and owns non-operating interests and royalties in 952 additional wells. It also acquires producing oil and gas properties through joint ventures with industry partners; and provides contract services to third parties, including well-servicing support, site-preparation, and construction services for oil and gas drilling and reworking operations. The company was formerly known as PrimeEnergy Corporation and changed its name to PrimeEnergy Resources Corporation in December 2018. PrimeEnergy Resources Corporation was incorporated in 1973 and is headquartered in Houston, Texas.

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