Extraction Oil & Gas (OTCMKTS:XOGAQ) versus CNX Resources (NYSE:CNX) Head to Head Analysis

Extraction Oil & Gas (OTCMKTS:XOGAQ) and CNX Resources (NYSE:CNX) are both oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Institutional & Insider Ownership

38.6% of Extraction Oil & Gas shares are owned by institutional investors. Comparatively, 95.2% of CNX Resources shares are owned by institutional investors. 6.0% of Extraction Oil & Gas shares are owned by insiders. Comparatively, 3.1% of CNX Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Extraction Oil & Gas and CNX Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Extraction Oil & Gas	-223.86%	-56.20%	-11.52%
CNX Resources	50.34%	9.00%	4.20%

Valuation and Earnings

This table compares Extraction Oil & Gas and CNX Resources’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Extraction Oil & Gas	$906.64 million	0.01	-$1.39 billion	($0.46)	-0.13
CNX Resources	$3.47 billion	1.05	$1.72 billion	$9.09	2.61

CNX Resources has higher revenue and earnings than Extraction Oil & Gas. Extraction Oil & Gas is trading at a lower price-to-earnings ratio than CNX Resources, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Extraction Oil & Gas and CNX Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Extraction Oil & Gas	0	0	0	0	N/A
CNX Resources	1	4	1	0	2.00

CNX Resources has a consensus target price of $23.40, indicating a potential downside of 1.29%. Given CNX Resources’ higher probable upside, analysts clearly believe CNX Resources is more favorable than Extraction Oil & Gas.

Volatility and Risk

Extraction Oil & Gas has a beta of 2.1, suggesting that its share price is 110% more volatile than the S&P 500. Comparatively, CNX Resources has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.

Summary

CNX Resources beats Extraction Oil & Gas on 11 of the 13 factors compared between the two stocks.

About Extraction Oil & Gas

Extraction Oil & Gas, Inc., an independent oil and gas company, focuses on the acquisition, development, and production of oil, natural gas, and natural gas liquid reserves in the Rocky Mountain region, primarily in the Wattenberg Field of the Denver-Julesburg (DJ) Basin of Colorado. The company also engages in the construction and support of midstream assets to gather, process, and produce crude oil and gas. As of December 31, 2019, it had approximately 169,900 net acres of contiguous acreage blocks in the productive areas of the DJ Basin; held approximately 125,500 net acres outside of the Core DJ Basin; had estimated proved reserves of approximately 254.1 MMBoe; and had 1,509 gross producing wells. The company was founded in 2012 and is headquartered in Denver, Colorado. On June 14, 2020, Extraction Oil & Gas, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

About CNX Resources

CNX Resources Corporation, an independent natural gas and midstream company, engages in the acquisition, exploration, development, and production of natural gas properties in the Appalachian Basin. The company operates in two segments, Shale and Coalbed Methane (CBM). It produces and sells pipeline quality natural gas primarily for gas wholesalers. The company owns rights to extract natural gas from shale properties in Pennsylvania, West Virginia, and Ohio, as well as rights to extract natural gas from other shale and shallow oil and gas formations in Illinois, Indiana, New York, and Virginia. It also owns rights to extract CBM in Virginia, West Virginia, Pennsylvania, Ohio, Illinois, Indiana, and New Mexico. In addition, the company designs, builds, and operates natural gas gathering systems to move gas from the wellhead to interstate pipelines or other local sales points; owns and operates approximately 2,600 miles of natural gas gathering pipelines, as well as various natural gas processing facilities. It also offers turn-key solutions for water sourcing, delivery, and disposal for its natural gas operations and for third parties. The company was formerly known as CONSOL Energy Inc. and changed its name to CNX Resources Corporation in November 2017. CNX Resources Corporation was founded in 1860 and is headquartered in Canonsburg, Pennsylvania.