Financial Analysis: ZaZa Energy (OTCMKTS:ZAZA) and Coterra Energy (NYSE:CTRA)

Coterra Energy (NYSE:CTRA) and ZaZa Energy (OTCMKTS:ZAZA) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Profitability

This table compares Coterra Energy and ZaZa Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coterra Energy	22.46%	10.43%	6.33%
ZaZa Energy	N/A	N/A	N/A

Insider & Institutional Ownership

87.9% of Coterra Energy shares are held by institutional investors. 1.7% of Coterra Energy shares are held by insiders. Comparatively, 56.9% of ZaZa Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Coterra Energy and ZaZa Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coterra Energy	1	8	14	0	2.57
ZaZa Energy	0	0	0	0	0.00

Coterra Energy currently has a consensus target price of $34.29, indicating a potential upside of 7.19%. Given Coterra Energy’s stronger consensus rating and higher possible upside, research analysts clearly believe Coterra Energy is more favorable than ZaZa Energy.

Earnings and Valuation

This table compares Coterra Energy and ZaZa Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coterra Energy	$7.65 billion	3.18	$1.72 billion	$2.28	14.03
ZaZa Energy	N/A	N/A	N/A	N/A	N/A

Coterra Energy has higher revenue and earnings than ZaZa Energy.

Summary

Coterra Energy beats ZaZa Energy on 8 of the 9 factors compared between the two stocks.

About Coterra Energy

Coterra Energy Inc., an independent oil and gas company, engages in the development, exploration, and production of oil, natural gas, and natural gas liquids in the United States. The company’s properties include the Marcellus Shale with approximately 186,000 net acres in the dry gas window of the play located in Susquehanna County, Pennsylvania; Permian Basin properties with approximately 296,000 net acres located in west Texas and southeast New Mexico; and Anadarko Basin properties with approximately 182,000 net acres located in Oklahoma. It also operates natural gas and saltwater gathering and disposal systems in Texas. The company sells its natural gas to industrial customers, local distribution companies, oil and gas marketers, major energy companies, pipeline companies, and power generation facilities. Coterra Energy Inc. was incorporated in 1989 and is headquartered in Houston, Texas.

About ZaZa Energy

ZaZa Energy Corporation, an independent oil and gas company, focuses on the exploration and production of unconventional and conventional oil and gas assets in the United States. The company's properties include the Eagle Ford East Trend comprising approximately 41,000 net acres in Houston, Leon, Madison, Grimes, Walker, Trinity, and Montgomery counties in East Texas; and Eagle Ford Trend covering approximately 3,700 net acres located in DeWitt and Lavaca counties in South Texas. ZaZa Energy Corporation is headquartered in Houston, Texas.