Head to Head Analysis: Birchcliff Energy (OTCMKTS:BIREF) & Canadian Natural Resources (NYSE:CNQ)

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

Valuation and Earnings

This table compares Canadian Natural Resources and Birchcliff Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canadian Natural Resources	$42.49 billion	1.88	$6.10 billion	$2.51	14.98
Birchcliff Energy	$548.41 million	2.04	$7.24 million	$0.11	37.73

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

Risk & Volatility

Canadian Natural Resources has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500. Comparatively, Birchcliff Energy has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Canadian Natural Resources and Birchcliff Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Natural Resources	0	4	1	0	2.20
Birchcliff Energy	0	2	0	0	2.00

Canadian Natural Resources presently has a consensus target price of $49.50, suggesting a potential upside of 31.68%. Given Canadian Natural Resources’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Canadian Natural Resources is more favorable than Birchcliff Energy.

Profitability

This table compares Canadian Natural Resources and Birchcliff Energy’s 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%
Birchcliff Energy	6.05%	1.82%	1.27%

Dividends

Canadian Natural Resources pays an annual dividend of $1.66 per share and has a dividend yield of 4.4%. Birchcliff Energy pays an annual dividend of $0.30 per share and has a dividend yield of 7.2%. Canadian Natural Resources pays out 66.1% of its earnings in the form of a dividend. Birchcliff Energy pays out 272.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

74.0% of Canadian Natural Resources shares are owned by institutional investors. Comparatively, 0.8% of Birchcliff Energy shares are owned by institutional investors. 5.0% of Canadian Natural Resources shares are owned by insiders. Comparatively, 1.5% of Birchcliff Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Canadian Natural Resources beats Birchcliff Energy on 13 of the 16 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 Birchcliff Energy

Birchcliff Energy Ltd., an intermediate oil and natural gas company, explores for, develops, and produces natural gas, light oil, condensate, and other natural gas liquids in Western Canada. The company holds interests in the areas of Montney/Doig Resource Play, including the Pouce Coupe and Gordondale properties in Alberta. Birchcliff Energy Ltd. was founded in 2004 and is headquartered in Calgary, Canada.