Chesapeake Granite Wash Trust (NYSE: CHKR) and Bill Barrett (NYSE:BBG) are both small-cap oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.
This is a breakdown of recent ratings and recommmendations for Chesapeake Granite Wash Trust and Bill Barrett, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Chesapeake Granite Wash Trust||0||0||0||0||N/A|
Bill Barrett has a consensus price target of $6.61, suggesting a potential upside of 36.59%. Given Bill Barrett’s higher possible upside, analysts plainly believe Bill Barrett is more favorable than Chesapeake Granite Wash Trust.
Chesapeake Granite Wash Trust pays an annual dividend of $0.31 per share and has a dividend yield of 20.7%. Bill Barrett does not pay a dividend. Chesapeake Granite Wash Trust pays out 81.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Chesapeake Granite Wash Trust and Bill Barrett’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Chesapeake Granite Wash Trust||84.71%||43.81%||43.81%|
Earnings and Valuation
This table compares Chesapeake Granite Wash Trust and Bill Barrett’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Chesapeake Granite Wash Trust||$12.43 million||5.64||$12.48 million||$0.38||3.95|
|Bill Barrett||$252.84 million||2.11||-$138.22 million||($1.76)||-2.75|
Chesapeake Granite Wash Trust has higher earnings, but lower revenue than Bill Barrett. Bill Barrett is trading at a lower price-to-earnings ratio than Chesapeake Granite Wash Trust, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
1.9% of Chesapeake Granite Wash Trust shares are held by institutional investors. Comparatively, 88.8% of Bill Barrett shares are held by institutional investors. 2.7% of Bill Barrett shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
Chesapeake Granite Wash Trust has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500. Comparatively, Bill Barrett has a beta of 3.59, meaning that its stock price is 259% more volatile than the S&P 500.
Chesapeake Granite Wash Trust beats Bill Barrett on 8 of the 15 factors compared between the two stocks.
About Chesapeake Granite Wash Trust
Chesapeake Granite Wash Trust (the Trust) is a trust formed to own royalty interests for the benefit of Trust unit holders. The royalty interests held by the Trust (Royalty Interests) are derived from Chesapeake Energy Corporation’s (Chesapeake) interests in specified oil and natural gas properties located in the Colony Granite Wash play in Washita County. Chesapeake conveyed the Royalty Interests to the Trust from its interests in approximately 70 existing horizontal wells (Producing Wells) and Chesapeake’s interests in over 120 horizontal development wells (Development Wells) to be drilled on properties within the Area of Mutual Interest (AMI). The AMI lies within Washita County in western Oklahoma and is limited to Colony Granite Wash formation, where Chesapeake holds approximately 40,500 gross acres. Chesapeake has drilled and completed over 90 wells within the AMI. The Colony Granite Wash is located at the eastern end of Des Moines-age granite wash fields.
About Bill Barrett
Bill Barrett Corporation is an independent energy company that develops, acquires and explores for oil and natural gas resources. The Company’s assets and operations are located in the Rocky Mountain region of the United States. It has over two areas of production: The Denver-Julesburg Basin (DJ Basin) and the Uinta Oil Program in the Uinta Basin. Its acreage positions in the DJ Basin are located in Colorado’s eastern plains and parts of southeastern Wyoming. It had interests in 299 gross producing wells and served as an operator in 202 gross wells, as of December 31, 2016. The Uinta Basin is located in northeastern Utah. Uinta Basin’s estimated proved reserves are 21.4 million barrels of oil equivalent (MMBoe). Uinta Basin has interests in approximately 240 gross producing wells. The Company serves as an operator in over 170 gross wells. The Uinta Oil Program includes over three areas of development located in the basin referred as Blacktail Ridge, Lake Canyon and East Bluebell.
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