Canadian Natural Resources (NYSE:CNQ) versus Birchcliff Energy (OTCMKTS:BIREF) Head to Head Comparison

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Birchcliff Energy	6.05%	1.82%	1.27%
Canadian Natural Resources	18.05%	22.09%	11.51%

Risk & Volatility

Birchcliff Energy has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Canadian Natural Resources has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Birchcliff Energy and Canadian Natural Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Birchcliff Energy	0	2	0	0	2.00
Canadian Natural Resources	0	4	1	0	2.20

Canadian Natural Resources has a consensus target price of $49.50, indicating a potential upside of 31.65%. Given Canadian Natural Resources’ stronger consensus rating and higher possible upside, analysts plainly believe Canadian Natural Resources is more favorable than Birchcliff Energy.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Birchcliff Energy	$548.41 million	2.04	$7.24 million	$0.11	37.73
Canadian Natural Resources	$42.49 billion	1.88	$6.10 billion	$2.51	14.98

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

Dividends

Birchcliff Energy pays an annual dividend of $0.29 per share and has a dividend yield of 7.0%. Canadian Natural Resources pays an annual dividend of $1.66 per share and has a dividend yield of 4.4%. Birchcliff Energy pays out 263.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Canadian Natural Resources pays out 66.1% of its earnings in the form of a dividend.

Insider & Institutional Ownership

0.8% of Birchcliff Energy shares are held by institutional investors. Comparatively, 74.0% of Canadian Natural Resources shares are held by institutional investors. 1.5% of Birchcliff Energy shares are held by company insiders. Comparatively, 5.0% of Canadian Natural Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Canadian Natural Resources beats Birchcliff Energy on 13 of the 16 factors compared between the two stocks.

About Birchcliff Energy

Birchcliff Energy Ltd., an intermediate oil and natural gas company, explores for, develops, and produces natural gas, light oil, condensate, and other natural gas liquids in Western Canada. The company holds interests in the areas of Montney/Doig Resource Play, including the Pouce Coupe and Gordondale properties in Alberta. Birchcliff Energy Ltd. was founded in 2004 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.