Head to Head Survey: Expand Energy (NASDAQ:EXE) versus Gibson Energy (OTCMKTS:GBNXF)

Gibson Energy (OTCMKTS:GBNXF) and Expand Energy (NASDAQ:EXE) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.

Dividends

Gibson Energy pays an annual dividend of $1.30 per share and has a dividend yield of 5.5%. Expand Energy pays an annual dividend of $2.30 per share and has a dividend yield of 2.5%. Gibson Energy pays out 183.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Expand Energy pays out 19.9% of its earnings in the form of a dividend.

Insider and Institutional Ownership

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

Earnings and Valuation

This table compares Gibson Energy and Expand Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gibson Energy	$7.65 billion	0.53	$141.45 million	$0.71	33.13
Expand Energy	$12.12 billion	1.77	$1.82 billion	$11.58	8.02

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

Volatility and Risk

Gibson Energy has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, Expand Energy has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.

Profitability

This table compares Gibson Energy and Expand Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gibson Energy	1.32%	18.20%	3.41%
Expand Energy	20.46%	10.33%	6.89%

Analyst Recommendations

This is a breakdown of recent ratings for Gibson Energy and Expand Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gibson Energy	0	4	4	1	2.67
Expand Energy	0	5	15	3	2.91

Expand Energy has a consensus target price of $122.89, indicating a potential upside of 32.26%. Given Expand Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Expand Energy is more favorable than Gibson Energy.

Summary

Expand Energy beats Gibson Energy on 13 of the 17 factors compared between the two stocks.

About Gibson Energy

Gibson Energy Inc., together with its subsidiaries, engages in the gathering, storage, optimization, processing, and marketing of liquids and refined products in Canada and the United States. It operates through Infrastructure and Marketing segments. The Infrastructure segment operates a network of liquid infrastructure assets that include oil terminals, rail loading and unloading facilities, gathering pipelines, a crude oil processing facility, and other terminals. The Marketing segment purchases, sells, stores, and optimizes hydrocarbon products, including crude oil, natural gas liquids, road asphalt, roofing flux, frac oils, light and heavy straight run distillates, vacuum gas oil, and an oil-based mud product. It serves producers, refiners, marketers, and integrated companies, as well as exploration and production companies. The company was formerly known as Gibson Energy Holdings ULC and changed its name to Gibson Energy Inc. in April 2011. Gibson Energy Inc. was founded in 1953 and is headquartered in Calgary, Canada.

About Expand 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.