Bonterra Energy (OTCMKTS:BNEFF) versus Canadian Natural Resources (NYSE:CNQ) Financial Analysis

Bonterra Energy (OTCMKTS:BNEFF) and Canadian Natural Resources (NYSE:CNQ) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, dividends, earnings and risk.

Profitability

This table compares Bonterra Energy and Canadian Natural Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bonterra Energy	0.84%	0.41%	0.22%
Canadian Natural Resources	19.00%	19.67%	9.59%

Risk and Volatility

Bonterra Energy has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, Canadian Natural Resources has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Institutional and Insider Ownership

0.3% of Bonterra Energy shares are held by institutional investors. Comparatively, 74.0% of Canadian Natural Resources shares are held by institutional investors. 5.0% of Canadian Natural Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Bonterra Energy and Canadian Natural Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bonterra Energy	0	0	0	0	0.00
Canadian Natural Resources	0	2	4	0	2.67

Canadian Natural Resources has a consensus target price of $62.00, indicating a potential upside of 107.84%. Given Canadian Natural Resources’ stronger consensus rating and higher probable upside, analysts clearly believe Canadian Natural Resources is more favorable than Bonterra Energy.

Valuation and Earnings

This table compares Bonterra Energy and Canadian Natural Resources”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bonterra Energy	$204.33 million	0.48	$7.45 million	$0.05	53.08
Canadian Natural Resources	$30.30 billion	2.06	$4.46 billion	$2.82	10.58

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

Summary

Canadian Natural Resources beats Bonterra Energy on 13 of the 14 factors compared between the two stocks.

About Bonterra Energy

Bonterra Energy Corp., a conventional oil and gas company, engages in the development and production of oil and natural gas in Canada. Its principal properties include Pembina Cardium, a conventional oil field, at the Pembina and Willesden green fields located in central Alberta; and holds 100% interest in the Montney properties that consist of approximately 28,880 acres located in the north of Grand Prairie, Alberta. The company was incorporated in 2013 and is headquartered in Calgary, Canada.

About Canadian Natural Resources

Canadian Natural Resources Limited acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs). The company offers light and medium crude oil, primary heavy crude oil, Pelican Lake heavy crude oil, bitumen (thermal oil), and synthetic crude oil (SCO). The company’s midstream assets include two pipeline systems; and a 50% working interest in an 84-megawatt cogeneration plant at Primrose. 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.