PetroChina (NYSE:PTR) and Lonestar Resources US (NASDAQ:LONE) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
PetroChina pays an annual dividend of $1.71 per share and has a dividend yield of 2.3%. Lonestar Resources US does not pay a dividend. PetroChina pays out 96.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
PetroChina has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, Lonestar Resources US has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500.
Insider and Institutional Ownership
0.3% of PetroChina shares are held by institutional investors. Comparatively, 46.7% of Lonestar Resources US shares are held by institutional investors. 2.3% of Lonestar Resources US shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings and price targets for PetroChina and Lonestar Resources US, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lonestar Resources US||0||0||6||0||3.00|
PetroChina currently has a consensus price target of $94.35, indicating a potential upside of 29.49%. Lonestar Resources US has a consensus price target of $11.50, indicating a potential upside of 52.32%. Given Lonestar Resources US’s stronger consensus rating and higher possible upside, analysts clearly believe Lonestar Resources US is more favorable than PetroChina.
Valuation & Earnings
This table compares PetroChina and Lonestar Resources US’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PetroChina||$298.35 billion||0.45||$3.37 billion||$1.78||40.93|
|Lonestar Resources US||$94.07 million||1.98||-$38.66 million||($0.42)||-17.98|
PetroChina has higher revenue and earnings than Lonestar Resources US. Lonestar Resources US is trading at a lower price-to-earnings ratio than PetroChina, indicating that it is currently the more affordable of the two stocks.
This table compares PetroChina and Lonestar Resources US’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Lonestar Resources US||-37.79%||-5.39%||-1.62%|
PetroChina beats Lonestar Resources US on 10 of the 16 factors compared between the two stocks.
PetroChina Company Profile
PetroChina Company Limited, together with its subsidiaries, engages in a range of petroleum related products, services, and activities in Mainland China and internationally. It operates through Exploration and Production, Refining and Chemicals, Marketing, and Natural Gas and Pipeline segments. The Exploration and Production segment engages in the exploration, development, production, and marketing of crude oil and natural gas. The Refining and Chemicals segment refines crude oil and petroleum products; produces and markets primary petrochemical products, derivative petrochemical products, and other chemical products. The Marketing segment is involved in marketing of refined products and trading business. The Natural Gas and Pipeline segment engages in the transmission of natural gas, crude oil, and refined products; and sale of natural gas. As of December 31, 2017, the company had a total length of 82,374 km, including 51,315 km of natural gas pipelines, 19,670 km of crude oil pipelines, and 11,389 km of refined product pipelines. It is also involved in the exploration, development, and production of oil sands and coalbed methane; trading of crude oil and petrochemical products; storage, chemical engineering, storage facilities, service station, and transportation facilities and related businesses; import and export of goods and technology; and import and export agency business, as well as provision of technology promotion, professional contractor, and main contractor services. The company was founded in 1988 and is headquartered in Beijing, the People's Republic of China. PetroChina Company Limited is a subsidiary of China National Petroleum Corporation.
Lonestar Resources US Company Profile
Lonestar Resources US Inc., an independent oil and gas company, engages in the acquisition, development, and production of unconventional oil, natural gas liquids, and natural gas properties in the United States. The company primarily focuses on Eagle Ford Shale properties in Texas counties. Lonestar Resources US Inc. was incorporated in 2015 and is headquartered in Fort Worth, Texas.
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