Contrasting Whiting USA Trust II (OTCMKTS:WHZT) and Canadian Natural Resources (OTCMKTS:CNQ)

Canadian Natural Resources (NYSE:CNQ) and Whiting USA Trust II (OTCMKTS:WHZT) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.

Insider and Institutional Ownership

66.6% of Canadian Natural Resources shares are owned by institutional investors. 5.0% of Canadian Natural Resources shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Canadian Natural Resources has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, Whiting USA Trust II has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.

Profitability

This table compares Canadian Natural Resources and Whiting USA Trust II’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Canadian Natural Resources 18.37% 7.87% 3.46%
Whiting USA Trust II 28.25% 107.45% 105.27%

Dividends

Canadian Natural Resources pays an annual dividend of $1.13 per share and has a dividend yield of 4.0%. Whiting USA Trust II pays an annual dividend of $0.25 per share and has a dividend yield of 59.5%. Canadian Natural Resources pays out 52.6% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and price targets for Canadian Natural Resources and Whiting USA Trust II, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Canadian Natural Resources 1 5 12 0 2.61
Whiting USA Trust II 0 0 0 0 N/A

Canadian Natural Resources currently has a consensus price target of $40.76, indicating a potential upside of 45.41%. Given Canadian Natural Resources’ higher probable upside, equities research analysts plainly believe Canadian Natural Resources is more favorable than Whiting USA Trust II.

Earnings and Valuation

This table compares Canadian Natural Resources and Whiting USA Trust II’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Canadian Natural Resources $17.19 billion 1.93 $2.00 billion $2.15 13.04
Whiting USA Trust II $18.92 million 0.41 $18.11 million N/A N/A

Canadian Natural Resources has higher revenue and earnings than Whiting USA Trust II.

Summary

Canadian Natural Resources beats Whiting USA Trust II on 7 of the 13 factors compared between the two stocks.

About Canadian Natural Resources

Canadian Natural Resources Limited explores for, develops, produces, and markets crude oil, natural gas, and natural gas liquids (NGLs). The company offers synthetic crude oil (SCO), light and medium crude oil, bitumen (thermal oil), primary heavy crude oil, and Pelican Lake heavy crude oil. Its midstream assets include two crude oil pipeline systems; and a 50% working interest in an 84-megawatt cogeneration plant at Primrose. As of December 31, 2017, the company's gross proved crude oil, bitumen, SCO, and NGLs reserves totaled 8,784 million barrels; gross proved plus probable crude oil, bitumen, SCO, and NGLs reserves totaled 11,760 million barrels; proved natural gas reserves totaled 6,652 billion cubic feet; and gross proved plus probable natural gas reserves totaled 9,734 billion cubic feet. 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.

About Whiting USA Trust II

Whiting USA Trust II holds a term net profits interest in the oil and gas producing properties located in the Permian Basin, Rocky Mountains, Gulf Coast, and Mid-Continent regions. As of December 31, 2018, its oil and gas properties included interests in approximately 367.8 net producing oil and natural gas wells located in 46 predominately mature fields with established production profiles in 10 states. The company was founded in 2011 and is based in Houston, Texas. Whiting USA Trust II is a subsidiary of Whiting Petroleum Corporation.

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