Canadian Natural Resources (NYSE:CNQ) vs. SandRidge Energy (NYSE:SD) Head-To-Head Comparison

SandRidge Energy (NYSE:SD) and Canadian Natural Resources (NYSE:CNQ) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.

Dividends

SandRidge Energy pays an annual dividend of $0.52 per share and has a dividend yield of 3.6%. Canadian Natural Resources pays an annual dividend of $1.80 per share and has a dividend yield of 3.3%. SandRidge Energy pays out 23.2% of its earnings in the form of a dividend. Canadian Natural Resources pays out 44.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. SandRidge Energy has increased its dividend for 2 consecutive years and Canadian Natural Resources has increased its dividend for 24 consecutive years. SandRidge Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SandRidge Energy	$180.12 million	2.94	$70.20 million	$2.24	6.37
Canadian Natural Resources	$31.61 billion	3.50	$7.74 billion	$4.05	13.28

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

Volatility and Risk

SandRidge Energy has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, Canadian Natural Resources has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for SandRidge Energy and Canadian Natural Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SandRidge Energy	0	3	0	0	2.00
Canadian Natural Resources	0	4	6	1	2.73

Canadian Natural Resources has a consensus price target of $57.00, indicating a potential upside of 6.01%. Given Canadian Natural Resources’ stronger consensus rating and higher probable upside, analysts clearly believe Canadian Natural Resources is more favorable than SandRidge Energy.

Institutional and Insider Ownership

61.8% of SandRidge Energy shares are owned by institutional investors. Comparatively, 74.0% of Canadian Natural Resources shares are owned by institutional investors. 1.6% of SandRidge Energy shares are owned by company insiders. Comparatively, 5.0% of Canadian Natural Resources shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SandRidge Energy	46.06%	13.62%	10.93%
Canadian Natural Resources	22.78%	23.91%	11.45%

Summary

Canadian Natural Resources beats SandRidge Energy on 14 of the 18 factors compared between the two stocks.

About SandRidge Energy

SandRidge Energy, Inc. engages in the acquisition, development, and production of oil, natural gas, and natural gas liquids in the United States Mid-Continent. The company was incorporated in 2006 and is headquartered in Oklahoma City, Oklahoma.

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.