Financial Contrast: Chesapeake Energy (CHK) vs. The Competition

Chesapeake Energy (NASDAQ: CHK) is one of 264 publicly-traded companies in the “Crude petroleum & natural gas” industry, but how does it weigh in compared to its peers? We will compare Chesapeake Energy to similar companies based on the strength of its profitability, valuation, analyst recommendations, institutional ownership, earnings, risk and dividends.

Profitability

This table compares Chesapeake Energy and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chesapeake Energy 109.73% -109.73% 62.96%
Chesapeake Energy Competitors -145.25% -18.94% -2.02%

Analyst Recommendations

This is a summary of recent ratings and price targets for Chesapeake Energy and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chesapeake Energy 0 1 4 0 2.80
Chesapeake Energy Competitors 2031 10229 14450 471 2.49

Chesapeake Energy currently has a consensus price target of $61.00, suggesting a potential upside of 9.75%. As a group, “Crude petroleum & natural gas” companies have a potential downside of 11.53%. Given Chesapeake Energy’s stronger consensus rating and higher possible upside, research analysts plainly believe Chesapeake Energy is more favorable than its peers.

Dividends

Chesapeake Energy pays an annual dividend of $5.50 per share and has a dividend yield of 9.9%. Chesapeake Energy pays out -12.6% of its earnings in the form of a dividend. As a group, “Crude petroleum & natural gas” companies pay a dividend yield of 2.5% and pay out -144.4% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Chesapeake Energy and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Chesapeake Energy $5.30 billion -$9.73 billion -1.28
Chesapeake Energy Competitors $5.48 billion -$670.29 million -3.63

Chesapeake Energy’s peers have higher revenue and earnings than Chesapeake Energy. Chesapeake Energy is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

96.1% of Chesapeake Energy shares are held by institutional investors. Comparatively, 48.7% of shares of all “Crude petroleum & natural gas” companies are held by institutional investors. 10.9% of shares of all “Crude petroleum & natural gas” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Chesapeake Energy beats its peers on 8 of the 14 factors compared.

About Chesapeake Energy

Chesapeake Energy Corporation engages in the acquisition, exploration, and development of properties for the production of oil, natural gas, and natural gas liquids (NGL) from underground reservoirs in the United States. The company holds interests in natural gas resource plays, including the Marcellus in Northern Appalachian Basin in Pennsylvania; Haynesville located in Northwestern Louisiana; Eagle Ford in South Texas; Brazos Valley in Southeast Texas; and Powder River Basin in Wyoming. As of December 31, 2020, it owned interests in approximately 7,400 oil and natural gas wells, including 5,900 properties with working interest and 1,500 properties with royalty interest; and had estimated proved reserves of 60 Mmboe. The company was founded in 1989 and is headquartered in Oklahoma City, Oklahoma.

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