Contrasting BKV (NYSE:BKV) & Chevron (NYSE:CVX)

Chevron (NYSE:CVX) and BKV (NYSE:BKV) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Risk and Volatility

Chevron has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, BKV has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Institutional & Insider Ownership

72.4% of Chevron shares are held by institutional investors. 0.6% of Chevron shares are held by insiders. Comparatively, 2.5% of BKV shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Chevron and BKV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chevron	N/A	N/A	N/A
BKV	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and price targets for Chevron and BKV, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chevron	1	5	21	1	2.79
BKV	0	1	8	2	3.09

Chevron currently has a consensus target price of $213.96, suggesting a potential downside of 6.23%. BKV has a consensus target price of $33.67, suggesting a potential upside of 57.59%. Given BKV’s stronger consensus rating and higher probable upside, analysts clearly believe BKV is more favorable than Chevron.

Earnings & Valuation

This table compares Chevron and BKV”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chevron	$208.71 billion	2.16	$20.61 billion	$10.43	21.88
BKV	$1.05 billion	2.22	$299.86 million	$2.74	7.80

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

About Chevron

Chevron Corporation, through its subsidiaries, engages in the integrated energy and chemicals operations in the United States and internationally. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, production, and transportation of crude oil and natural gas; processing, liquefaction, transportation, and regasification of liquefied natural gas; transportation of crude oil through pipelines; transportation, storage, and marketing of natural gas; and carbon capture and storage, as well as a gas-to-liquids plant. The Downstream segment refines crude oil into petroleum products; markets crude oil, refined products, and lubricants; manufactures and markets renewable fuels, commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives; and transports crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car. The company was formerly known as ChevronTexaco Corporation and changed its name to Chevron Corporation in 2005. Chevron Corporation was founded in 1879 and is headquartered in San Ramon, California.

About BKV

BKV Corporation engages in the acquisition, operation, and development of natural gas and NGL properties. It is also involved in the gathering, processing, and transportation of natural gas. The company was founded in 2015 and is based in Denver, Colorado with additional offices in Tunkhannock, Pennsylvania and Fort Worth, Texas. BKV Corporation, LLC operates as a subsidiary of Banpu North America Corporation.