Financial Contrast: Chesapeake Energy (OTCMKTS:CHKAQ) and Sable Offshore (NYSE:SOC)

Chesapeake Energy (OTCMKTS:CHKAQ) and Sable Offshore (NYSE:SOC) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Profitability

This table compares Chesapeake Energy and Sable Offshore’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%
Sable Offshore	N/A	-319.58%	-39.11%

Institutional & Insider Ownership

2.0% of Chesapeake Energy shares are owned by institutional investors. Comparatively, 26.2% of Sable Offshore shares are owned by institutional investors. 1.1% of Chesapeake Energy shares are owned by insiders. Comparatively, 14.3% of Sable Offshore shares are owned by 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.

Earnings & Valuation

This table compares Chesapeake Energy and Sable Offshore”s gross revenue, earnings per share and valuation.

	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
Sable Offshore	N/A	N/A	-$32.18 million	N/A	N/A

Sable Offshore has lower revenue, but higher earnings than Chesapeake Energy.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Chesapeake Energy and Sable Offshore, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chesapeake Energy	0	0	0	0	0.00
Sable Offshore	1	0	4	0	2.60

Sable Offshore has a consensus target price of $25.00, suggesting a potential upside of 3.82%. Given Sable Offshore’s stronger consensus rating and higher possible upside, analysts plainly believe Sable Offshore is more favorable than Chesapeake Energy.

Risk & Volatility

Chesapeake Energy has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Sable Offshore has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500.

Summary

Sable Offshore beats Chesapeake Energy on 7 of the 11 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 Sable Offshore

Sable Offshore Corp. engages in the oil and gas exploration and development activities in the United States. The company operates through three platforms located in federal waters offshore California. It owns and operates 16 federal leases across approximately 76,000 acres and subsea pipelines, which transport crude oil, natural gas, and produced water from the platforms to the onshore processing facilities. The company was formerly known as Flame Acquisition Corp. and changed its name to Sable Offshore Corp. in February 2024. Sable Offshore Corp. was incorporated in 2020 and is based in Houston, Texas.