RWE Aktiengesellschaft (OTCMKTS:RWEOY) vs. Chesapeake Energy (OTCMKTS:CHKAQ) Critical Analysis

Chesapeake Energy (OTCMKTS:CHKAQGet Free Report) and RWE Aktiengesellschaft (OTCMKTS:RWEOYGet Free Report) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Risk and Volatility

Chesapeake Energy has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, RWE Aktiengesellschaft has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Insider & Institutional Ownership

2.0% of Chesapeake Energy shares are owned by institutional investors. 1.1% of Chesapeake Energy shares are owned 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.

Valuation & Earnings

This table compares Chesapeake Energy and RWE Aktiengesellschaft”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chesapeake Energy $8.49 billion 0.00 -$308.00 million ($54.00) -0.06
RWE Aktiengesellschaft $30.91 billion N/A $1.57 billion $4.12 7.44

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Chesapeake Energy and RWE Aktiengesellschaft, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chesapeake Energy 0 0 0 0 0.00
RWE Aktiengesellschaft 0 1 0 1 3.00

Profitability

This table compares Chesapeake Energy and RWE Aktiengesellschaft’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chesapeake Energy -162.46% N/A -3.45%
RWE Aktiengesellschaft 12.03% 8.16% 2.75%

Summary

RWE Aktiengesellschaft beats Chesapeake Energy on 9 of the 12 factors compared between the two stocks.

About Chesapeake Energy

(Get Free Report)

Chesapeake Energy Corp. is an independent exploration and production company, which engages in acquisition, exploration and development of properties for the production of oil, natural gas and natural gas liquids from underground reservoirs. It focuses on projects located in Louisiana, Ohio, Oklahoma, Pennsylvania, Texas, and Wyoming. The company was founded by Aubrey K. McClendon and Tom L. Ward on May 18, 1989 and is headquartered in Oklahoma City, OK.

About RWE Aktiengesellschaft

(Get Free Report)

RWE Aktiengesellschaft generates and supplies electricity from renewable and conventional sources in Germany, the United Kingdom, rest of Europe, North America, and internationally. It operates through five segments: Offshore Wind; Onshore Wind/Solar; Hydro/Biomass/Gas; Supply & Trading; and Coal/Nuclear. The company generates wind, hydro, solar, nuclear, gas, and biomass electricity. It also trades in electricity, gas, and energy commodities; operates gas storage facilities; and engages in battery storage activities. The company serves commercial, industrial, and corporate customers. RWE Aktiengesellschaft was founded in 1898 and is headquartered in Essen, Germany.

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