Financial Comparison: Chesapeake Energy (NASDAQ:CHK) versus HKN (OTCMKTS:HKNI)

HKN (OTCMKTS:HKNI) and Chesapeake Energy (NASDAQ:CHK) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, valuation, institutional ownership, earnings and dividends.

Insider & Institutional Ownership

97.9% of Chesapeake Energy shares are held by institutional investors. 0.1% of HKN shares are held by insiders. Comparatively, 0.1% of Chesapeake Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for HKN and Chesapeake Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HKN	0	0	0	0	N/A
Chesapeake Energy	0	6	6	0	2.50

Chesapeake Energy has a consensus price target of $104.73, indicating a potential upside of 15.48%. Given Chesapeake Energy’s higher probable upside, analysts clearly believe Chesapeake Energy is more favorable than HKN.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
HKN	N/A	N/A	N/A
Chesapeake Energy	27.74%	6.74%	4.87%

Valuation & Earnings

This table compares HKN and Chesapeake Energy’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HKN	N/A	N/A	N/A	N/A	N/A
Chesapeake Energy	$8.72 billion	1.36	$2.42 billion	$16.84	5.39

Chesapeake Energy has higher revenue and earnings than HKN.

Summary

Chesapeake Energy beats HKN on 8 of the 8 factors compared between the two stocks.

About HKN

HKN, Inc. operates as an independent energy company. The company owns an oilfield emulsion breaking technology that purifies oilfield emulsions by breaking and separating the emulsions into oil, water, and solids. It also holds non-operated oil and gas leases and mineral interests in properties located in the Bakken and Niobrara shale oil plays; and rights to acreage in the Permian Basin of Texas. The company was founded in 1973 and is based in Southlake, Texas.

About Chesapeake Energy

Chesapeake Energy Corporation operates as an independent exploration and production company in the United States. It engages in acquisition, exploration, and development of properties to produce oil, natural gas, and natural gas liquids from underground reservoirs. The company holds interests in natural gas resource plays in the Marcellus Shale in the northern Appalachian Basin in Pennsylvania and the Haynesville/Bossier Shales in northwestern Louisiana. As of December 31, 2023, the company owns a portfolio of onshore U.S. unconventional natural gas assets, including interests in approximately 5,000 natural gas wells. Chesapeake Energy Corporation was founded in 1989 and is based in Oklahoma City, Oklahoma.