Comparing Canadian Natural Resources (NYSE:CNQ) and Sundance Energy Australia (OTCMKTS:SDCJF)

Sundance Energy Australia (OTCMKTS:SDCJF) and Canadian Natural Resources (NYSE:CNQ) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Risk and Volatility

Sundance Energy Australia has a beta of 3.96, suggesting that its stock price is 296% more volatile than the S&P 500. Comparatively, Canadian Natural Resources has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500.

Valuation and Earnings

This table compares Sundance Energy Australia and Canadian Natural Resources”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sundance Energy Australia	$164.93 million	0.06	-$28.14 million	N/A	N/A
Canadian Natural Resources	$30.25 billion	2.31	$6.10 billion	$2.57	12.85

Canadian Natural Resources has higher revenue and earnings than Sundance Energy Australia.

Analyst Ratings

This is a breakdown of current ratings and price targets for Sundance Energy Australia and Canadian Natural Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sundance Energy Australia	0	0	0	0	0.00
Canadian Natural Resources	0	4	0	0	2.00

Canadian Natural Resources has a consensus target price of $51.00, indicating a potential upside of 54.08%. Given Canadian Natural Resources’ stronger consensus rating and higher probable upside, analysts clearly believe Canadian Natural Resources is more favorable than Sundance Energy Australia.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sundance Energy Australia	24.02%	13.45%	6.16%
Canadian Natural Resources	18.45%	20.07%	10.51%

Institutional and Insider Ownership

74.0% 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, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Canadian Natural Resources beats Sundance Energy Australia on 9 of the 11 factors compared between the two stocks.

About Sundance Energy Australia

Sundance Energy Australia Limited operates as an onshore oil and gas company in the United States. The company explores for, develops, and produces oil and natural gas. Its exploration and development activities are focused on the Eagle Ford project in the South-Texas-Gulf Coast Basin. Sundance Energy Australia Limited was incorporated in 2004 and is based in Wayville, Australia.

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.