Critical Review: Cenovus Energy (NYSE:CVE) & Vitesse Energy (NYSE:VTS)

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

Earnings & Valuation

This table compares Cenovus Energy and Vitesse Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cenovus Energy	$38.67 billion	0.76	$3.04 billion	$1.45	11.02
Vitesse Energy	$233.90 million	3.43	-$19.74 million	$1.46	18.61

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

Dividends

Cenovus Energy pays an annual dividend of $0.53 per share and has a dividend yield of 3.3%. Vitesse Energy pays an annual dividend of $2.10 per share and has a dividend yield of 7.7%. Cenovus Energy pays out 36.6% of its earnings in the form of a dividend. Vitesse Energy pays out 143.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Cenovus Energy and Vitesse Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cenovus Energy	6.72%	12.88%	6.80%
Vitesse Energy	18.05%	7.25%	4.95%

Institutional & Insider Ownership

51.2% of Cenovus Energy shares are held by institutional investors. Comparatively, 51.6% of Vitesse Energy shares are held by institutional investors. 15.8% of Vitesse Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Cenovus Energy and Vitesse Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cenovus Energy	0	1	5	0	2.83
Vitesse Energy	0	1	0	0	2.00

Cenovus Energy currently has a consensus price target of $30.00, suggesting a potential upside of 87.68%. Vitesse Energy has a consensus price target of $26.00, suggesting a potential downside of 4.31%. Given Cenovus Energy’s stronger consensus rating and higher probable upside, equities analysts plainly believe Cenovus Energy is more favorable than Vitesse Energy.

Risk & Volatility

Cenovus Energy has a beta of 2.05, indicating that its stock price is 105% more volatile than the S&P 500. Comparatively, Vitesse Energy has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500.

Summary

Cenovus Energy beats Vitesse Energy on 9 of the 16 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 Vitesse Energy

Vitesse Energy, Inc., together with its subsidiaries, engages in the acquisition, development, and production of non-operated oil and natural gas properties in the United States. It owns and acquires non-operated working interest and royalty interest ownership in the Williston Basin properties located in North Dakota and Montana. The company also owns non-operated interests in the Central Rockies properties located in Colorado and Wyoming. Vitesse Energy, Inc. was founded in 2014 and is based in Centennial, Colorado.