Contrasting Canadian Natural Resources (NYSE:CNQ) and Bonterra Energy (OTCMKTS:BNEFF)

Canadian Natural Resources (NYSE:CNQ) and Bonterra Energy (OTCMKTS:BNEFF) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.

Institutional and Insider Ownership

74.0% of Canadian Natural Resources shares are owned by institutional investors. Comparatively, 0.3% of Bonterra Energy shares are owned by institutional investors. 5.0% of Canadian Natural Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Canadian Natural Resources and Bonterra Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canadian Natural Resources	$30.30 billion	2.16	$4.46 billion	$2.82	11.09
Bonterra Energy	$204.33 million	0.46	$7.45 million	($0.13)	-19.62

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

Profitability

This table compares Canadian Natural Resources and Bonterra Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian Natural Resources	19.00%	19.67%	9.59%
Bonterra Energy	-2.57%	-1.21%	-0.67%

Analyst Ratings

This is a summary of current ratings and target prices for Canadian Natural Resources and Bonterra Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Natural Resources	0	2	4	1	2.86
Bonterra Energy	0	0	0	0	0.00

Canadian Natural Resources presently has a consensus price target of $62.00, suggesting a potential upside of 98.21%. Given Canadian Natural Resources’ stronger consensus rating and higher possible upside, analysts plainly believe Canadian Natural Resources is more favorable than Bonterra Energy.

Risk and Volatility

Canadian Natural Resources has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Bonterra Energy has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.

Summary

Canadian Natural Resources beats Bonterra Energy on 14 of the 15 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 Bonterra Energy

Bonterra Energy Corp., a conventional oil and gas company, engages in the development and production of oil and natural gas in Canada. Its principal properties include Pembina Cardium, a conventional oil field, at the Pembina and Willesden green fields located in central Alberta; and holds 100% interest in the Montney properties that consist of approximately 28,880 acres located in the north of Grand Prairie, Alberta. The company was incorporated in 2013 and is headquartered in Calgary, Canada.