Canadian Natural Resources (NYSE:CNQ) & TETRA Technologies (NYSE:TTI) Critical Contrast

Canadian Natural Resources (NYSE:CNQ) and TETRA Technologies (NYSE:TTI) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, earnings, analyst recommendations, institutional ownership and profitability.

Institutional and Insider Ownership

74.0% of Canadian Natural Resources shares are held by institutional investors. Comparatively, 70.2% of TETRA Technologies shares are held by institutional investors. 5.0% of Canadian Natural Resources shares are held by insiders. Comparatively, 5.8% of TETRA Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Canadian Natural Resources and TETRA Technologies’ 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%
TETRA Technologies	1.61%	18.84%	5.71%

Risk & Volatility

Canadian Natural Resources has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, TETRA Technologies has a beta of 2.05, suggesting that its share price is 105% more volatile than the S&P 500.

Earnings and Valuation

This table compares Canadian Natural Resources and TETRA Technologies”s top-line 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	1.77	$6.10 billion	$2.51	14.06
TETRA Technologies	$626.26 million	0.69	$25.78 million	$0.16	20.69

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Canadian Natural Resources and TETRA Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Natural Resources	0	5	1	0	2.17
TETRA Technologies	0	0	2	0	3.00

Canadian Natural Resources presently has a consensus price target of $49.50, suggesting a potential upside of 40.31%. TETRA Technologies has a consensus price target of $7.00, suggesting a potential upside of 111.48%. Given TETRA Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe TETRA Technologies is more favorable than Canadian Natural Resources.

Summary

Canadian Natural Resources beats TETRA Technologies on 8 of the 14 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 TETRA Technologies

TETRA Technologies, Inc., together with its subsidiaries, operates as an energy services and solutions company. It operates through two segments, Completion Fluids & Products Division and Water & Flowback Services. The Completion Fluids & Products segment manufactures and markets clear brine fluids, additives, and associated products and services to the oil and gas industry for use in well drilling, completion, and workover operations in the United States, as well as in Latin America, Europe, Asia, the Middle East, and Africa. This segment also markets liquid and dry calcium chloride products; and TETRA PureFlow ultra-pure zinc bromide to battery technology companies. The Water & Flowback Services segment provides water management services for onshore oil and gas operators. This segment also offers frac flowback, production well testing, and other associated services in oil and gas producing regions in the United States, as well as in various basins in Latin America, Africa, Europe, and the Middle East. TETRA Technologies, Inc. was incorporated in 1981 and is headquartered in The Woodlands, Texas.