Critical Comparison: Vitesse Energy (NYSE:VTS) & Coterra Energy (NYSE:CTRA)

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

Dividends

Coterra Energy pays an annual dividend of $0.88 per share and has a dividend yield of 3.2%. Vitesse Energy pays an annual dividend of $2.25 per share and has a dividend yield of 11.1%. Coterra Energy pays out 40.6% of its earnings in the form of a dividend. Vitesse Energy pays out 450.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Coterra Energy has raised its dividend for 4 consecutive years and Vitesse Energy has raised its dividend for 2 consecutive years.

Volatility & Risk

Coterra Energy has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, Vitesse Energy has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Coterra Energy	23.25%	11.23%	6.80%
Vitesse Energy	7.70%	5.71%	3.87%

Valuation & Earnings

This table compares Coterra Energy and Vitesse Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coterra Energy	$5.46 billion	3.88	$1.12 billion	$2.17	12.82
Vitesse Energy	$242.00 million	3.25	$21.06 million	$0.50	40.65

Coterra Energy has higher revenue and earnings than Vitesse Energy. Coterra 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.

Institutional & Insider Ownership

87.9% of Coterra Energy shares are held by institutional investors. Comparatively, 51.6% of Vitesse Energy shares are held by institutional investors. 1.5% of Coterra Energy shares are held by insiders. Comparatively, 18.2% of Vitesse Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Coterra Energy and Vitesse Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coterra Energy	1	6	16	0	2.65
Vitesse Energy	0	4	2	0	2.33

Coterra Energy currently has a consensus price target of $32.76, indicating a potential upside of 17.79%. Vitesse Energy has a consensus price target of $24.50, indicating a potential upside of 20.54%. Given Vitesse Energy’s higher possible upside, analysts plainly believe Vitesse Energy is more favorable than Coterra Energy.

Summary

Coterra Energy beats Vitesse Energy on 12 of the 17 factors compared between the two stocks.

About Coterra Energy

Coterra Energy Inc., an independent oil and gas company, engages in the development, exploration, and production of oil, natural gas, and natural gas liquids in the United States. The company’s properties include the Marcellus Shale with approximately 186,000 net acres in the dry gas window of the play located in Susquehanna County, Pennsylvania; Permian Basin properties with approximately 296,000 net acres located in west Texas and southeast New Mexico; and Anadarko Basin properties with approximately 182,000 net acres located in Oklahoma. It also operates natural gas and saltwater gathering and disposal systems in Texas. The company sells its natural gas to industrial customers, local distribution companies, oil and gas marketers, major energy companies, pipeline companies, and power generation facilities. Coterra Energy Inc. was incorporated in 1989 and is headquartered in Houston, Texas.

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.