Flex LNG (NYSE:FLNG) versus Canadian Natural Resources (NYSE:CNQ) Head-To-Head Comparison

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

Risk and Volatility

Canadian Natural Resources has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, Flex LNG has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500.

Insider & Institutional Ownership

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

Earnings & Valuation

This table compares Canadian Natural Resources and Flex LNG”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canadian Natural Resources	$31.61 billion	3.65	$7.74 billion	$4.05	13.88
Flex LNG	$347.64 million	4.42	$74.82 million	$1.90	14.97

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Canadian Natural Resources	22.78%	23.91%	11.45%
Flex LNG	28.50%	14.88%	4.07%

Analyst Ratings

This is a summary of recent recommendations for Canadian Natural Resources and Flex LNG, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Natural Resources	0	4	6	1	2.73
Flex LNG	2	1	0	0	1.33

Canadian Natural Resources presently has a consensus price target of $57.00, suggesting a potential upside of 1.42%. Flex LNG has a consensus price target of $25.00, suggesting a potential downside of 12.09%. Given Canadian Natural Resources’ stronger consensus rating and higher probable upside, equities analysts plainly believe Canadian Natural Resources is more favorable than Flex LNG.

Dividends

Canadian Natural Resources pays an annual dividend of $1.80 per share and has a dividend yield of 3.2%. Flex LNG pays an annual dividend of $3.00 per share and has a dividend yield of 10.5%. Canadian Natural Resources pays out 44.4% of its earnings in the form of a dividend. Flex LNG pays out 157.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Canadian Natural Resources has increased its dividend for 24 consecutive years.

Summary

Canadian Natural Resources beats Flex LNG on 14 of the 18 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 Flex LNG

FLEX LNG Ltd. engages in the seaborne transportation of liquefied natural gas (LPG) through the ownership and operation of LNG carriers. The company was founded by Philip Eystein Fjeld, Trym Tveitnes and Jostein Ueland in September 2006 and is headquartered in Hamilton, Bermuda.