Analyzing Repsol (OTCMKTS:REPYY) and Chesapeake Energy (NASDAQ:EXE)

Chesapeake Energy (NASDAQ:EXE) and Repsol (OTCMKTS:REPYY) are both large-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Valuation & Earnings

This table compares Chesapeake Energy and Repsol”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chesapeake Energy	$8.72 billion	2.62	$2.42 billion	$1.62	61.04
Repsol	$63.35 billion	0.24	$3.43 billion	$1.90	6.57

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

Dividends

Chesapeake Energy pays an annual dividend of $2.30 per share and has a dividend yield of 2.3%. Repsol pays an annual dividend of $0.85 per share and has a dividend yield of 6.8%. Chesapeake Energy pays out 142.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Repsol pays out 44.7% of its earnings in the form of a dividend. Repsol is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

97.9% of Chesapeake Energy shares are owned by institutional investors. Comparatively, 0.3% of Repsol shares are owned by institutional investors. 0.2% of Chesapeake Energy shares are owned by company insiders. Comparatively, 1.0% of Repsol shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Chesapeake Energy has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500. Comparatively, Repsol has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Chesapeake Energy and Repsol, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chesapeake Energy	0	3	4	1	2.75
Repsol	0	4	1	1	2.50

Chesapeake Energy currently has a consensus price target of $101.71, suggesting a potential upside of 2.86%. Given Chesapeake Energy’s stronger consensus rating and higher probable upside, equities analysts plainly believe Chesapeake Energy is more favorable than Repsol.

Profitability

This table compares Chesapeake Energy and Repsol’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chesapeake Energy	6.07%	2.74%	2.08%
Repsol	3.74%	13.09%	6.21%

Summary

Repsol beats Chesapeake Energy on 9 of the 16 factors compared between the two stocks.

About Chesapeake Energy

Expand Energy Corporation is an independent natural gas producer principally in the United States. Expand Energy Corporation, formerly known as Chesapeake Energy Corporation, is based in OKLAHOMA CITY.

About Repsol

Repsol, S.A. operates as a multi-e energy company worldwide. Its Upstream segment engages in the exploration, development, and production of crude oil and natural gas reserves, as well as develops low-carbon geological solutions. The company's Industrial segment is involved in refining activities and petrochemicals business; the trading, transport, and sale of crude oil, natural gas, and fuels; and development of hydrogen, biomethane, sustainable biofuels, and synthetic fuels. Its Customer segment is involved in mobility; and sale of fuel products, electricity and gas, lubricants, and other specialties. The company's Low-Carbon Generation segment engages in the low-emissions electricity generation and renewable sources. The company also offers asphalt products; installs, operates, and manages service stations; provides maritime services; constructs and operates oil refineries; explores and produces hydrocarbons; offers human resource; distributes and supplies electricity; and develops new energy projects, solar, and wind projects, as well as produces and sells chemical products and lubricants. In addition, it is involved in fuel and special products sale, research, trading and transport, insurance and reinsurance, safety, and financing activities; development of production processes, storage, transport, use, consumption, and transformation of hydrogen; decarbonization activities; and promotion, design, construction, and operation of molecular recycling facilities. Further, the company produces synthetic oil cloths; and invests in liquefaction plant project. The company was formerly known as Repsol YPF, S.A. and changed its name to Repsol, S.A. in May 2012. Repsol, S.A. was founded in 1927 and is headquartered in Madrid, Spain.