Chesapeake Energy (OTCMKTS:CHKAQ) versus Permian Resources (NASDAQ:PR) Financial Analysis

Chesapeake Energy (OTCMKTS:CHKAQ) and Permian Resources (NASDAQ:PR) are both oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Insider and Institutional Ownership

2.0% of Chesapeake Energy shares are owned by institutional investors. Comparatively, 91.8% of Permian Resources shares are owned by institutional investors. 1.1% of Chesapeake Energy shares are owned by insiders. Comparatively, 12.8% of Permian Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Chesapeake Energy has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, Permian Resources has a beta of 4.37, indicating that its stock price is 337% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Chesapeake Energy and Permian Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chesapeake Energy	0	0	0	0	N/A
Permian Resources	0	2	13	1	2.94

Permian Resources has a consensus price target of $20.00, suggesting a potential upside of 38.31%. Given Permian Resources’ higher probable upside, analysts clearly believe Permian Resources is more favorable than Chesapeake Energy.

Profitability

This table compares Chesapeake Energy and Permian Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chesapeake Energy	-162.46%	N/A	-3.45%
Permian Resources	15.62%	11.91%	7.45%

Earnings & Valuation

This table compares Chesapeake Energy and Permian Resources’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chesapeake Energy	$8.49 billion	0.00	-$308.00 million	($54.00)	-0.06
Permian Resources	$4.37 billion	2.55	$476.31 million	$1.10	13.15

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

Summary

Permian Resources beats Chesapeake Energy on 13 of the 14 factors compared between the two stocks.

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.

About Permian Resources

Permian Resources Corporation, an independent oil and natural gas company, focuses on the development of crude oil and related liquids-rich natural gas reserves in the United States. The company's assets primarily focus on the Delaware Basin, a sub-basin of the Permian Basin. Its properties consist of acreage blocks in West Texas, Eddy County, Lea County, and New Mexico. The company was formerly known as Centennial Resource Development, Inc. and changed its name to Permian Resources Corporation in September 2022. Permian Resources Corporation was incorporated in 2015 and is headquartered in Midland, Texas.