Analyzing Baytex Energy (BTE) & CNOOC (CEO)

Baytex Energy (NYSE: BTE) and CNOOC (NYSE:CEO) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Profitability

This table compares Baytex Energy and CNOOC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Baytex Energy -33.43% -3.79% -1.60%
CNOOC N/A N/A N/A

Dividends

CNOOC pays an annual dividend of $4.92 per share and has a dividend yield of 3.2%. Baytex Energy does not pay a dividend. CNOOC pays out 58.2% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Baytex Energy and CNOOC’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Baytex Energy $588.99 million 1.28 -$366.41 million ($1.30) -2.47
CNOOC $22.06 billion 3.14 $92.00 million $8.45 18.33

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

Risk & Volatility

Baytex Energy has a beta of 3.42, indicating that its stock price is 242% more volatile than the S&P 500. Comparatively, CNOOC has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.

Insider & Institutional Ownership

16.5% of Baytex Energy shares are held by institutional investors. Comparatively, 1.6% of CNOOC shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Baytex Energy and CNOOC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Baytex Energy 2 3 1 0 1.83
CNOOC 0 2 5 1 2.88

Baytex Energy currently has a consensus price target of $4.25, indicating a potential upside of 32.40%. CNOOC has a consensus price target of $72.32, indicating a potential downside of 53.32%. Given Baytex Energy’s higher probable upside, equities analysts clearly believe Baytex Energy is more favorable than CNOOC.

Summary

CNOOC beats Baytex Energy on 12 of the 16 factors compared between the two stocks.

About Baytex Energy

Baytex Energy Corp. (Baytex) is engaged in the business of acquiring, developing, exploiting and holding interests in petroleum and natural gas properties and related assets in Canada (Alberta and Saskatchewan) and in the United States (Texas). The Company’s crude oil and natural gas operations are organized into four business units: Lloydminster, Peace River, Conventional and United States. Each business unit has a portfolio of mineral leases, operated and non-operated properties and development prospects. The Company’s subsidiaries include Baytex Energy Ltd. and Baytex Energy USA, Inc. Baytex Energy Ltd. is engaged in the business of oil and natural gas exploration, exploitation, development, acquisition and production in Canada. Baytex Energy USA, Inc. is engaged in the business of oil and natural gas exploration, exploitation, development, acquisition and production in the United States. It holds all of the operating assets in the United States.

About CNOOC

CNOOC Limited is a Hong Kong-based investment holding company principally engaged in the exploration, production and trading of oil and gas. Its businesses include conventional oil and gas businesses, shale oil and gas businesses, oil sands businesses and other unconventional oil and gas businesses. The Company mainly operates businesses through three segments. The Exploration and Production segment is engaged in the exploration, development and production of crude oil, natural gas and other petroleum products. The Trading segment is engaged in the trading of crude oil, natural gas and other petroleum products. The Corporate segment is engaged in corporate-related businesses. The Company mainly operates businesses in China, Canada, the United Kingdom, Nigeria, Indonesia and Brazil, among others.

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