Head to Head Analysis: Canadian Natural Resources (NYSE:CNQ) & ExxonMobil (NYSE:XOM)

ExxonMobil (NYSE:XOM) and Canadian Natural Resources (NYSE:CNQ) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ExxonMobil	N/A	N/A	N/A
Canadian Natural Resources	N/A	N/A	N/A

Earnings and Valuation

This table compares ExxonMobil 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
ExxonMobil	N/A	N/A	N/A	$7.77	23.15
Canadian Natural Resources	$51.40 billion	2.16	$8.32 billion	$4.05	13.35

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

Institutional & Insider Ownership

61.8% of ExxonMobil shares are held by institutional investors. Comparatively, 74.0% of Canadian Natural Resources shares are held by institutional investors. 0.0% of ExxonMobil shares are held by insiders. Comparatively, 5.0% of Canadian Natural Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for ExxonMobil and Canadian Natural Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ExxonMobil	0	13	11	1	2.52
Canadian Natural Resources	0	4	6	1	2.73

ExxonMobil presently has a consensus target price of $167.70, suggesting a potential downside of 6.77%. Canadian Natural Resources has a consensus target price of $57.00, suggesting a potential upside of 5.46%. Given Canadian Natural Resources’ stronger consensus rating and higher possible upside, analysts clearly believe Canadian Natural Resources is more favorable than ExxonMobil.

Summary

Canadian Natural Resources beats ExxonMobil on 5 of the 8 factors compared between the two stocks.

About ExxonMobil

ExxonMobil Corporation engages in the exploration and production of crude oil and natural gas in the United States and internationally. It operates through Upstream, Energy Products, Chemical Products, and Specialty Products segments. The Upstream segment explores for and produces crude oil and natural gas. The Energy Products segment offers fuels, aromatics, catalysts, and licensing services. It sells its products under the Exxon, Esso, and Mobil brands. The Chemical Products segment manufactures and markets petrochemicals, including olefins, polyolefins, and intermediates. The Specialty Products segment offers performance products, including lubricants, basestocks, waxes, synthetics, elastomers, and resins. The company is also involved in the manufacturing, trade, transport, and selling crude oil, natural gas, petroleum products, petrochemicals, and other specialty products in pursuit of lower-emission business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, and lithium. Exxon Mobil Corporation was founded in 1870 and is based in Spring, Texas.

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.