Critical Survey: Continental Resources (NYSE:CLR) vs. Comstock Resources (CRK)

Comstock Resources (NYSE: CRK) and Continental Resources (NYSE:CLR) are both oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Volatility & Risk

Comstock Resources has a beta of -0.44, indicating that its share price is 144% less volatile than the S&P 500. Comparatively, Continental Resources has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.

Profitability

This table compares Comstock Resources and Continental Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Comstock Resources -59.68% N/A -12.70%
Continental Resources -5.99% -2.46% -0.76%

Institutional & Insider Ownership

50.8% of Comstock Resources shares are owned by institutional investors. Comparatively, 23.1% of Continental Resources shares are owned by institutional investors. 11.6% of Comstock Resources shares are owned by company insiders. Comparatively, 77.0% of Continental Resources shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Comstock Resources and Continental Resources’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Comstock Resources $209.44 million 0.49 $166.92 million ($9.86) -0.68
Continental Resources $2.37 billion 5.41 $1.75 billion ($0.40) -86.35

Continental Resources has higher revenue and earnings than Comstock Resources. Continental Resources is trading at a lower price-to-earnings ratio than Comstock Resources, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for Comstock Resources and Continental Resources, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Comstock Resources 1 3 3 0 2.29
Continental Resources 1 4 15 0 2.70

Comstock Resources currently has a consensus target price of $12.75, suggesting a potential upside of 90.01%. Continental Resources has a consensus target price of $50.05, suggesting a potential upside of 44.90%. Given Comstock Resources’ higher probable upside, analysts clearly believe Comstock Resources is more favorable than Continental Resources.

Summary

Continental Resources beats Comstock Resources on 10 of the 13 factors compared between the two stocks.

About Comstock Resources

Comstock Resources, Inc. is an energy company engaged in the acquisition, exploration, development and production of oil and natural gas in the United States. The Company operates in the segment of exploration and production of oil and natural gas. The Company’s oil and gas operations are concentrated in Texas and Louisiana. Its operations are focused in two operating areas: East Texas/North Louisiana and South Texas. The Company’s properties in the East Texas/North Louisiana region include approximately 80,660 acres in the Haynesville or Bossier shale formations. The Company’s Eagleville field includes approximately 30,220 acres located in the oil window of the Eagle Ford shale in South Texas. The Company owns interests in over 1,575 producing oil and natural gas wells, and operates over 950 of these wells. The Company owns interests in over 20 wells in the Rosita field, located in Duval County, Texas.

About Continental Resources

Continental Resources, Inc. is a crude oil and natural gas company with properties in the North, South and East regions of the United States. The North region consists of properties north of Kansas and west of the Mississippi River and includes North Dakota Bakken, Montana Bakken and the Red River units. The South region includes properties south of Nebraska and west of the Mississippi River including various plays in the South Central Oklahoma Oil Province (SCOOP), Sooner Trend Anadarko Canadian Kingfisher (STACK), and Arkoma Woodford areas of Oklahoma. The East region is consists of undeveloped leasehold acreage east of the Mississippi River with no drilling or production operations. As of December 31, 2016, its estimated proved reserves were 1,275 million barrels of oil equivalent (MMBoe), with estimated proved developed reserves of 519 MMBoe. As of December 31, 2016, its average daily production from South region properties was 91,088 barrels of oil equivalent (Boe) per day.

What are top analysts saying about Comstock Resources Inc.? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Comstock Resources Inc. and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit