Reviewing Coterra Energy (NYSE:CTRA) & Carbon Energy (OTCMKTS:CRBO)

Carbon Energy (OTCMKTS:CRBO) and Coterra Energy (NYSE:CTRA) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Institutional and Insider Ownership

87.9% of Coterra Energy shares are held by institutional investors. 7.1% of Carbon Energy shares are held by insiders. Comparatively, 1.7% of Coterra Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Carbon Energy and Coterra Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carbon Energy	N/A	N/A	N/A	N/A	N/A
Coterra Energy	$7.08 billion	3.36	$1.12 billion	$2.17	14.40

Coterra Energy has higher revenue and earnings than Carbon Energy.

Risk and Volatility

Carbon Energy has a beta of -1.99, meaning that its stock price is 299% less volatile than the S&P 500. Comparatively, Coterra Energy has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500.

Profitability

This table compares Carbon Energy and Coterra Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carbon Energy	N/A	N/A	N/A
Coterra Energy	23.25%	11.23%	6.80%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Carbon Energy and Coterra Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carbon Energy	0	0	0	0	0.00
Coterra Energy	1	7	15	0	2.61

Coterra Energy has a consensus price target of $33.48, suggesting a potential upside of 7.12%. Given Coterra Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Coterra Energy is more favorable than Carbon Energy.

Summary

Coterra Energy beats Carbon Energy on 9 of the 10 factors compared between the two stocks.

About Carbon Energy

Carbon Energy Corporation, an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids properties in the United States. It focuses on conventional and unconventional reservoirs, including shale, tight sand, and coalbed methane located in the Appalachian, Illinois, and Ventura Basins. It owns working interests and royalty interests in wells located in California, Illinois, Indiana, Kentucky, Ohio, Tennessee, Virginia, and West Virginia, as well as had leasehold positions. The company was formerly known as Carbon Natural Gas Company and changed its name to Carbon Energy Corporation in June 2018. Carbon Energy Corporation was founded in 2007 and is based in Denver, Colorado.

About Coterra Energy

Coterra Energy Inc., an independent oil and gas company, engages in the development, exploration, and production of oil, natural gas, and natural gas liquids in the United States. The company’s properties include the Marcellus Shale with approximately 186,000 net acres in the dry gas window of the play located in Susquehanna County, Pennsylvania; Permian Basin properties with approximately 296,000 net acres located in west Texas and southeast New Mexico; and Anadarko Basin properties with approximately 182,000 net acres located in Oklahoma. It also operates natural gas and saltwater gathering and disposal systems in Texas. The company sells its natural gas to industrial customers, local distribution companies, oil and gas marketers, major energy companies, pipeline companies, and power generation facilities. Coterra Energy Inc. was incorporated in 1989 and is headquartered in Houston, Texas.