Critical Analysis: Mid-Con Energy Partners (NASDAQ:MCEP) and Canadian Natural Resources (NASDAQ:CNQ)

Mid-Con Energy Partners (NASDAQ:MCEP) and Canadian Natural Resources (NYSE:CNQ) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Mid-Con Energy Partners and Canadian Natural Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mid-Con Energy Partners 0 0 0 0 N/A
Canadian Natural Resources 1 5 13 0 2.63

Canadian Natural Resources has a consensus price target of $41.48, suggesting a potential upside of 60.60%. Given Canadian Natural Resources’ higher possible upside, analysts plainly believe Canadian Natural Resources is more favorable than Mid-Con Energy Partners.

Volatility and Risk

Mid-Con Energy Partners has a beta of 1.77, indicating that its stock price is 77% more volatile than the S&P 500. Comparatively, Canadian Natural Resources has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Valuation & Earnings

This table compares Mid-Con Energy Partners and Canadian Natural Resources’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mid-Con Energy Partners $72.79 million 0.16 -$18.25 million N/A N/A
Canadian Natural Resources $17.19 billion 1.79 $2.00 billion $2.15 12.01

Canadian Natural Resources has higher revenue and earnings than Mid-Con Energy Partners.

Institutional & Insider Ownership

10.7% of Mid-Con Energy Partners shares are held by institutional investors. Comparatively, 65.0% of Canadian Natural Resources shares are held by institutional investors. 7.3% of Mid-Con Energy Partners shares are held by insiders. Comparatively, 5.0% of Canadian Natural Resources shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Canadian Natural Resources pays an annual dividend of $1.13 per share and has a dividend yield of 4.4%. Mid-Con Energy Partners does not pay a dividend. Canadian Natural Resources pays out 52.6% of its earnings in the form of a dividend.

Profitability

This table compares Mid-Con Energy Partners and Canadian Natural Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mid-Con Energy Partners -0.93% 35.24% 9.46%
Canadian Natural Resources 22.22% 8.62% 3.82%

Summary

Canadian Natural Resources beats Mid-Con Energy Partners on 9 of the 14 factors compared between the two stocks.

Mid-Con Energy Partners Company Profile

Mid-Con Energy Partners, LP engages in the acquisition, ownership, and development of producing oil and natural gas properties in North America. The company's properties are primarily located in the Mid-Continent, Permian, Big Horn, and Powder River Basin regions of the United States in Oklahoma, Texas, and Wyoming areas. As of December 31, 2018, its total estimated proved reserves were 24.8 million barrel of oil equivalent. Mid-Con Energy GP, LLC serves as the general partner of Mid-Con Energy Partners, LP. The company was founded in 2011 and is headquartered in Tulsa, Oklahoma.

Canadian Natural Resources Company Profile

Canadian Natural Resources Limited explores for, develops, produces, and markets crude oil, natural gas, and natural gas liquids (NGLs). The company offers synthetic crude oil (SCO), light and medium crude oil, bitumen (thermal oil), primary heavy crude oil, and Pelican Lake heavy crude oil. Its midstream assets include two crude oil pipeline systems; and a 50% working interest in an 84-megawatt cogeneration plant at Primrose. As of December 31, 2017, the company's gross proved crude oil, bitumen, SCO, and NGLs reserves totaled 8,784 million barrels; gross proved plus probable crude oil, bitumen, SCO, and NGLs reserves totaled 11,760 million barrels; proved natural gas reserves totaled 6,652 billion cubic feet; and gross proved plus probable natural gas reserves totaled 9,734 billion cubic feet. It operates primarily in Western Canada; the United Kingdom portion of the North Sea; and Offshore Africa. The company was formerly known as AEX Minerals Corporation and changed its name to Canadian Natural Resources Limited in December 1975. Canadian Natural Resources Limited was incorporated in 1973 and is headquartered in Calgary, Canada.

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