Chesapeake Energy (OTCMKTS:CHKAQ – Get Free Report) and PEDEVCO (NYSE:PED – Get Free Report) are both small-cap oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.
Analyst Recommendations
This is a breakdown of recent ratings for Chesapeake Energy and PEDEVCO, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chesapeake Energy | 0 | 0 | 0 | 0 | 0.00 |
| PEDEVCO | 0 | 0 | 1 | 0 | 3.00 |
PEDEVCO has a consensus target price of $1.75, indicating a potential upside of 101.13%. Given PEDEVCO’s stronger consensus rating and higher possible upside, analysts clearly believe PEDEVCO is more favorable than Chesapeake Energy.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chesapeake Energy | $8.49 billion | 0.00 | -$308.00 million | ($54.00) | -0.06 |
| PEDEVCO | $30.78 million | 2.52 | $260,000.00 | $0.02 | 43.53 |
PEDEVCO has lower revenue, but higher earnings than Chesapeake Energy. Chesapeake Energy is trading at a lower price-to-earnings ratio than PEDEVCO, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Chesapeake Energy has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, PEDEVCO has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.
Insider & Institutional Ownership
2.0% of Chesapeake Energy shares are owned by institutional investors. Comparatively, 3.3% of PEDEVCO shares are owned by institutional investors. 1.1% of Chesapeake Energy shares are owned by company insiders. Comparatively, 70.6% of PEDEVCO shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Chesapeake Energy and PEDEVCO’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chesapeake Energy | -162.46% | N/A | -3.45% |
| PEDEVCO | 6.57% | 1.58% | 1.39% |
Summary
PEDEVCO beats Chesapeake Energy on 12 of the 14 factors compared between the two stocks.
About Chesapeake Energy
Chesapeake Energy Corp. is an independent exploration and production company, which engages in acquisition, exploration and development of properties for the production of oil, natural gas and natural gas liquids from underground reservoirs. It focuses on projects located in Louisiana, Ohio, Oklahoma, Pennsylvania, Texas, and Wyoming. The company was founded by Aubrey K. McClendon and Tom L. Ward on May 18, 1989 and is headquartered in Oklahoma City, OK.
About PEDEVCO
PEDEVCO Corp., an oil and gas company, focuses on the acquisition, development, and production of oil and natural gas assets in the United States. It holds interests in the Permian Basin asset covering an area of approximately 22,721 net acres located in New Mexico; and D-J Basin asset covering an area of approximately 19,214 net acres located in Wyoming. The company is headquartered in Houston, Texas.
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