Critical Comparison: Cenovus Energy (NYSE:CVE) and Genel Energy (OTCMKTS:GEGYY)

Cenovus Energy (NYSE:CVE) and Genel Energy (OTCMKTS:GEGYY) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Insider & Institutional Ownership

51.2% of Cenovus Energy shares are owned by institutional investors. 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 Cenovus Energy and Genel Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cenovus Energy	8.56%	16.68%	8.75%
Genel Energy	N/A	N/A	N/A

Volatility and Risk

Cenovus Energy has a beta of 2.07, indicating that its share price is 107% more volatile than the S&P 500. Comparatively, Genel Energy has a beta of 0.11, indicating that its share price is 89% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Cenovus Energy and Genel Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cenovus Energy	0	0	4	0	3.00
Genel Energy	0	0	0	0	N/A

Cenovus Energy presently has a consensus price target of $30.67, indicating a potential upside of 57.26%. Given Cenovus Energy’s higher probable upside, equities analysts clearly believe Cenovus Energy is more favorable than Genel Energy.

Dividends

Cenovus Energy pays an annual dividend of $0.52 per share and has a dividend yield of 2.7%. Genel Energy pays an annual dividend of $0.10 per share and has a dividend yield of 9.3%. Cenovus Energy pays out 28.9% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Cenovus Energy and Genel Energy’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cenovus Energy	$59.64 billion	0.61	$3.04 billion	$1.80	10.83
Genel Energy	$84.80 million	3.53	-$61.30 million	N/A	N/A

Cenovus Energy has higher revenue and earnings than Genel Energy.

Summary

Cenovus Energy beats Genel Energy on 9 of the 12 factors compared between the two stocks.

About Cenovus Energy

Cenovus Energy Inc., together with its subsidiaries, develops, produces, refines, transports, and markets crude oil, natural gas, and refined petroleum products in Canada and internationally. The company operates through Oil Sands, Conventional, Offshore, Canadian Refining, and U.S. Refining segments. The Oil Sands segment develops and produces bitumen and heavy oil in northern Alberta and Saskatchewan. This segment assets include Foster Creek, Christina Lake, and Sunrise projects, as well as Lloydminster thermal and conventional heavy oil assets. The Conventional segment holds natural gas liquids and natural gas assets primarily located in Elmworth-Wapiti, Kaybob-Edson, Clearwater, and Rainbow Lake operating in Alberta and British Columbia, as well as interests in various natural gas processing facilities. The offshore segment engages in offshore operation, exploration, and development activities in China and the East Coast of Canada. The Canadian Refining segment owns and operates Lloydminster upgrading and asphalt refining complex, which converts heavy oil and bitumen into synthetic crude oil, diesel, asphalt, and other ancillary products, as well as Bruderheim crude-by-rail terminal and ethanol plants. The U.S. Refining segment refines crude oil to produce gasoline, diesel, jet fuel, asphalt, and other products. Cenovus Energy Inc. is headquartered in Calgary, Canada.

About Genel Energy

Genel Energy plc, through its subsidiaries, operates as an independent oil and gas exploration and production company. It operates through two segments, Production and Pre-production. The Production segment holds a 25% working interest in the Tawke PSC; and 44% working interest in the Taq Taq PSC. The Pre-Production segment holds a 50% working interest in Odewayne and 51% working interest in SL10B13 block located in Somaliland; and 75% working interest in Lagzira block in Morocco. Genel Energy plc was founded in 2013 and is headquartered in London, the United Kingdom.