Canadian Natural Resources (NYSE:CNQ) vs. Pacific Coast Oil Trust (OTCMKTS:ROYTL) Financial Review

Canadian Natural Resources (NYSE:CNQ) and Pacific Coast Oil Trust (OTCMKTS:ROYTL) are both oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Volatility and Risk

Canadian Natural Resources has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500. Comparatively, Pacific Coast Oil Trust has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Canadian Natural Resources and Pacific Coast Oil Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Natural Resources	0	4	1	0	2.20
Pacific Coast Oil Trust	0	0	0	0	N/A

Canadian Natural Resources currently has a consensus target price of $49.50, suggesting a potential upside of 44.78%. Given Canadian Natural Resources’ higher probable upside, analysts clearly believe Canadian Natural Resources is more favorable than Pacific Coast Oil Trust.

Earnings and Valuation

This table compares Canadian Natural Resources and Pacific Coast Oil Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canadian Natural Resources	$42.49 billion	1.71	$6.10 billion	$2.51	13.62
Pacific Coast Oil Trust	N/A	N/A	N/A	N/A	N/A

Canadian Natural Resources has higher revenue and earnings than Pacific Coast Oil Trust.

Institutional and Insider Ownership

74.0% of Canadian Natural Resources shares are held by institutional investors. 5.0% of Canadian Natural Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Canadian Natural Resources and Pacific Coast Oil Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian Natural Resources	18.05%	22.09%	11.51%
Pacific Coast Oil Trust	N/A	N/A	N/A

Summary

Canadian Natural Resources beats Pacific Coast Oil Trust on 9 of the 9 factors compared between the two stocks.

About Canadian Natural Resources

Canadian Natural Resources Limited acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs). The company offers light and medium crude oil, primary heavy crude oil, Pelican Lake heavy crude oil, bitumen (thermal oil), and synthetic crude oil (SCO). The company’s midstream assets include two pipeline systems; and a 50% working interest in an 84-megawatt cogeneration plant at Primrose. It operates primarily in Western Canada; the United Kingdom portion of the North Sea; and Offshore Africa. The company was formerly known as AEX Minerals Corporation and changed its name to Canadian Natural Resources Limited in December 1975. Canadian Natural Resources Limited was incorporated in 1973 and is headquartered in Calgary, Canada.

About Pacific Coast Oil Trust

Pacific Coast Oil Trust acquires and holds net profits and royalty interests in various oil and natural gas properties located in California. Its properties include Orcutt properties located in the Santa Maria Basin; and West Pico, East Coyote, and Sawtelle properties located in the Los Angeles Basin of California. Pacific Coast Oil Trust was founded in 2012 and is based in Houston, Texas.