New Fortress Energy (NASDAQ:NFE – Get Free Report) and Ovintiv (NYSE:OVV – Get Free Report) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, earnings, valuation, profitability and analyst recommendations.
Volatility and Risk
New Fortress Energy has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Ovintiv has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.
Profitability
This table compares New Fortress Energy and Ovintiv’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New Fortress Energy | -149.40% | -795.34% | -17.27% |
| Ovintiv | 9.43% | 14.84% | 8.11% |
Valuation & Earnings
This table compares New Fortress Energy and Ovintiv”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New Fortress Energy | $1.50 billion | 0.02 | -$1.84 billion | ($135.00) | -0.04 |
| Ovintiv | $8.91 billion | 2.25 | $1.24 billion | $3.54 | 20.51 |
Ovintiv has higher revenue and earnings than New Fortress Energy. New Fortress Energy is trading at a lower price-to-earnings ratio than Ovintiv, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
58.6% of New Fortress Energy shares are owned by institutional investors. Comparatively, 83.8% of Ovintiv shares are owned by institutional investors. 29.4% of New Fortress Energy shares are owned by company insiders. Comparatively, 0.9% of Ovintiv shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent recommendations and price targets for New Fortress Energy and Ovintiv, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Fortress Energy | 1 | 1 | 0 | 0 | 1.50 |
| Ovintiv | 0 | 3 | 20 | 2 | 2.96 |
Ovintiv has a consensus target price of $72.32, indicating a potential downside of 0.40%. Given Ovintiv’s stronger consensus rating and higher probable upside, analysts clearly believe Ovintiv is more favorable than New Fortress Energy.
Summary
Ovintiv beats New Fortress Energy on 13 of the 15 factors compared between the two stocks.
About New Fortress Energy
New Fortress Energy Inc. operates as an integrated gas-to-power energy infrastructure company that provides energy and development services to end-users worldwide. The company operates in two segments, Terminals and Infrastructure, and Ships. The Terminals and Infrastructure segment engages in the natural gas procurement and liquefaction; and shipping, logistics, facilities and conversion, or development of natural gas-fired power generation. The Ships segment offers floating storage and regasification units (FRSU) and liquefied natural gas (LNG) carriers which are leased to customers under long-term or spot arrangements. The company operates LNG storage and regasification facility at the Port of Montego Bay, Jamaica; marine LNG storage and regasification facility in Old Harbour, Jamaica; Dual-fired combined heat and power facility in Clarendon, Jamaica; landed micro-fuel handling facility in San Juan, Puerto Rico; and LNG receiving facility and gas-fired power plant in Baja Califrnia Sur, Mexico, as well as a Miami facility. New Fortress Energy Inc. was founded in 1998 and is based in New York, New York.
About Ovintiv
Ovintiv Inc., together with its subsidiaries, explores, develops, produces, and markets natural gas, oil, and natural gas liquids in the United States and Canada. The company operates through USA Operations, Canadian Operations, and Market Optimization segments. Its principal assets include Permian in west Texas and Anadarko in west-central Oklahoma; and Montney in northeast British Columbia and northwest Alberta. In addition, the company's upstream assets comprise Bakken in northwest North Dakota, and Uinta in central Utah; and Horn River in northeast British Columbia. The company was formerly known as Encana Corporation and changed its name to Ovintiv Inc. in January 2020. Ovintiv Inc. was incorporated in 2020 and is based in Denver, Colorado.
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