Galp Energia, SGPS (OTCMKTS:GLPEY) and Chesapeake Energy (OTCMKTS:CHKAQ) Critical Survey

Galp Energia, SGPS (OTCMKTS:GLPEY) and Chesapeake Energy (OTCMKTS:CHKAQ) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Valuation and Earnings

This table compares Galp Energia, SGPS 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
Galp Energia, SGPS	$29.70 billion	0.49	$1.55 billion	N/A	N/A
Chesapeake Energy	$8.49 billion	0.00	-$308.00 million	($54.00)	-0.06

Galp Energia, SGPS has higher revenue and earnings than Chesapeake Energy.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Galp Energia, SGPS	5.99%	27.49%	9.25%
Chesapeake Energy	-162.46%	N/A	-3.45%

Volatility and Risk

Galp Energia, SGPS has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, Chesapeake Energy has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Galp Energia, SGPS and Chesapeake Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Galp Energia, SGPS	0	3	0	0	2.00
Chesapeake Energy	0	0	0	0	N/A

Insider and Institutional Ownership

2.0% of Chesapeake Energy shares are held by institutional investors. 1.1% of Chesapeake Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Galp Energia, SGPS beats Chesapeake Energy on 6 of the 9 factors compared between the two stocks.

About Galp Energia, SGPS

Galp Energia, SGPS, S.A. operates as an integrated energy operator in Portugal and internationally. The company operates through four segments: Upstream, Industrial & Midstream, Commercial, and Renewables and New Business. The Upstream segment engages in the exploration, development, and production of hydrocarbons primarily in Brazil, Mozambique, Namibia, and Angola. The Industrial & Midstream segment owns refineries in Portugal, as well as is involved in activities related to energy management of oil products, gas, and electricity. This segment provides storage and transportation infrastructure for oil and gas products, as well as engages in the sale of electricity to the grid in Portugal and Spain. The Commercial segment is involved in the areas of retail to final business-to-business and business to consumer customers of oil, gas, and electricity. The Renewables and New Business segment is involved in the development of solar and wind power generation projects in Portugal and Spain. In addition, it produces lithium-ion batteries, hydrogen, and biofuels; and operates service stations. Further, the company engages in the reinsurance business. The company was formerly known as Galp Petróleos e Gás de Portugal, SGPS, S.A. and changed its name to Galp Energia, SGPS, S.A. in September 2000. Galp Energia, SGPS, S.A. was incorporated in 1999 and is headquartered in Lisbon, Portugal.

About Chesapeake Energy

Chesapeake Energy Corp. is an independent exploration and production company, which engages in acquisition, exploration and development of properties for the production of oil, natural gas and natural gas liquids from underground reservoirs. It focuses on projects located in Louisiana, Ohio, Oklahoma, Pennsylvania, Texas, and Wyoming. The company was founded by Aubrey K. McClendon and Tom L. Ward on May 18, 1989 and is headquartered in Oklahoma City, OK.