Critical Contrast: Northern Oil and Gas (NYSE:NOG) & Chord Energy (NASDAQ:CHRD)

Northern Oil and Gas (NYSE:NOG) and Chord Energy (NASDAQ:CHRD) are both mid-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Dividends

Northern Oil and Gas pays an annual dividend of $1.80 per share and has a dividend yield of 7.6%. Chord Energy pays an annual dividend of $5.20 per share and has a dividend yield of 3.6%. Northern Oil and Gas pays out -28.3% of its earnings in the form of a dividend. Chord Energy pays out -460.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Northern Oil and Gas has raised its dividend for 4 consecutive years and Chord Energy has raised its dividend for 1 consecutive years. Northern Oil and Gas is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Northern Oil and Gas and Chord Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northern Oil and Gas	-33.17%	18.43%	7.14%
Chord Energy	-1.25%	7.06%	4.39%

Analyst Recommendations

This is a breakdown of current recommendations for Northern Oil and Gas and Chord Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northern Oil and Gas	2	4	4	0	2.20
Chord Energy	0	4	10	1	2.80

Northern Oil and Gas currently has a consensus target price of $32.38, suggesting a potential upside of 37.10%. Chord Energy has a consensus target price of $156.69, suggesting a potential upside of 9.02%. Given Northern Oil and Gas’ higher probable upside, research analysts clearly believe Northern Oil and Gas is more favorable than Chord Energy.

Institutional and Insider Ownership

98.8% of Northern Oil and Gas shares are held by institutional investors. Comparatively, 97.8% of Chord Energy shares are held by institutional investors. 2.8% of Northern Oil and Gas shares are held by insiders. Comparatively, 0.8% of Chord Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Northern Oil and Gas and Chord Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northern Oil and Gas	$2.48 billion	1.01	$38.76 million	($6.37)	-3.71
Chord Energy	$5.33 billion	1.52	$44.46 million	($1.13)	-127.20

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

Risk & Volatility

Northern Oil and Gas has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Chord Energy has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.

About Northern Oil and Gas

Northern Oil and Gas, Inc., an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the United States. It primarily holds interests in the Williston Basin, the Appalachian Basin, and the Permian Basin in the United States. The company is based in Minnetonka, Minnesota.

About Chord Energy

Chord Energy Corporation operates as an independent exploration and production company in the United States. It acquires, explores, develops, and produces crude oil, natural gas, and natural gas liquids in the Williston Basin. The company sells its products to refiners, marketers, and other purchasers that have access to nearby pipeline and rail facilities. The company was formerly known as Oasis Petroleum Inc. and changed its name to Chord Energy Corporation in July 2022. Chord Energy Corporation was founded in 2007 and is headquartered in Houston, Texas.