APA (NASDAQ:APA) and California Resources (OTCMKTS:CRCQQ) Head-To-Head Comparison

APA (NASDAQ:APA) and California Resources (OTCMKTS:CRCQQ) are both oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Profitability

This table compares APA and California Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
APA	24.36%	27.86%	7.99%
California Resources	-95.33%	-4.31%	-3.78%

Insider & Institutional Ownership

83.0% of APA shares are held by institutional investors. Comparatively, 35.7% of California Resources shares are held by institutional investors. 1.3% of APA shares are held by insiders. Comparatively, 4.1% of California Resources shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares APA and California Resources”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
APA	$8.19 billion	1.03	$2.86 billion	$7.08	3.22
California Resources	$2.63 billion	0.00	-$28.00 million	N/A	N/A

APA has higher revenue and earnings than California Resources.

Analyst Ratings

This is a breakdown of current recommendations and price targets for APA and California Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
APA	4	10	5	1	2.15
California Resources	0	0	0	0	0.00

APA currently has a consensus target price of $32.81, indicating a potential upside of 44.09%. Given APA’s stronger consensus rating and higher possible upside, research analysts clearly believe APA is more favorable than California Resources.

Summary

APA beats California Resources on 12 of the 13 factors compared between the two stocks.

About APA

APA Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids. It has oil and gas operations in the United States, Egypt, and North Sea. The company also has exploration and appraisal activities in Suriname, as well as holds interests in projects located in Uruguay and internationally. APA Corporation was incorporated in 1954 and is headquartered in Houston, Texas.

About California Resources

California Resources Corporation operates as an oil and natural gas exploration and production company in the State of California. The company sells crude oil, natural gas, and natural gas liquids to marketers, California refineries, and other purchasers that have access to transportation and storage facilities. It holds interests in approximately 2.2 million net acres of mineral acreage. As of December 31, 2019, the company had net proved reserves of 644 million barrels of oil equivalent. It also engages in the generation and sale of electricity to the grid and utility customers. The company was founded in 2014 and is based in Los Angeles, California. On July 15, 2020, California Resources Corporation, along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.