Head-To-Head Analysis: Coterra Energy (NYSE:CTRA) vs. California Resources (OTCMKTS:CRCQQ)

Coterra Energy (NYSE:CTRA) and California Resources (OTCMKTS:CRCQQ) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Profitability

This table compares Coterra Energy and California Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coterra Energy	23.18%	10.48%	6.62%
California Resources	-95.33%	-4.31%	-3.78%

Earnings and Valuation

This table compares Coterra Energy and California Resources”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coterra Energy	$5.66 billion	3.05	$1.63 billion	$1.73	13.38
California Resources	$2.63 billion	0.00	-$28.00 million	N/A	N/A

Coterra Energy has higher revenue and earnings than California Resources.

Institutional and Insider Ownership

87.9% of Coterra Energy shares are owned by institutional investors. Comparatively, 35.7% of California Resources shares are owned by institutional investors. 1.7% of Coterra Energy shares are owned by company insiders. Comparatively, 4.1% of California Resources shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Coterra Energy and California Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coterra Energy	0	2	16	1	2.95
California Resources	0	0	0	0	N/A

Coterra Energy presently has a consensus price target of $32.76, suggesting a potential upside of 41.23%. Given Coterra Energy’s higher probable upside, analysts plainly believe Coterra Energy is more favorable than California Resources.

Summary

Coterra Energy beats California Resources on 11 of the 12 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 California Resources

California Resources Corporation operates as an oil and natural gas exploration and production company in the State of California. The company sells crude oil, natural gas, and natural gas liquids to marketers, California refineries, and other purchasers that have access to transportation and storage facilities. It holds interests in approximately 2.2 million net acres of mineral acreage. As of December 31, 2019, the company had net proved reserves of 644 million barrels of oil equivalent. It also engages in the generation and sale of electricity to the grid and utility customers. The company was founded in 2014 and is based in Los Angeles, California. On July 15, 2020, California Resources Corporation, along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.