Comparing Chevron (NYSE:CVX) and HighPeak Energy (NASDAQ:HPK)

Chevron (NYSE:CVX) and HighPeak Energy (NASDAQ:HPK) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Institutional and Insider Ownership

72.4% of Chevron shares are owned by institutional investors. Comparatively, 24.1% of HighPeak Energy shares are owned by institutional investors. 0.6% of Chevron shares are owned by company insiders. Comparatively, 5.6% of HighPeak Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Chevron and HighPeak Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chevron	9.57%	11.09%	6.54%
HighPeak Energy	-10.52%	-1.44%	-0.71%

Valuation & Earnings

This table compares Chevron and HighPeak Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chevron	$189.03 billion	2.36	$12.30 billion	$10.43	21.64
HighPeak Energy	$863.36 million	1.61	$18.96 million	($0.79)	-13.91

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Chevron and HighPeak Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chevron	1	5	21	1	2.79
HighPeak Energy	1	1	0	0	1.50

Chevron presently has a consensus price target of $213.96, suggesting a potential downside of 5.19%. Given Chevron’s stronger consensus rating and higher probable upside, analysts plainly believe Chevron is more favorable than HighPeak Energy.

Volatility & Risk

Chevron has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, HighPeak Energy has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.

Summary

Chevron beats HighPeak Energy on 14 of the 15 factors compared between the two stocks.

About Chevron

Chevron Corporation, through its subsidiaries, engages in the integrated energy and chemicals operations in the United States and internationally. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, production, and transportation of crude oil and natural gas; processing, liquefaction, transportation, and regasification of liquefied natural gas; transportation of crude oil through pipelines; transportation, storage, and marketing of natural gas; and carbon capture and storage, as well as a gas-to-liquids plant. The Downstream segment refines crude oil into petroleum products; markets crude oil, refined products, and lubricants; manufactures and markets renewable fuels, commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives; and transports crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car. The company was formerly known as ChevronTexaco Corporation and changed its name to Chevron Corporation in 2005. Chevron Corporation was founded in 1879 and is headquartered in San Ramon, California.

About HighPeak Energy

HighPeak Energy, Inc., an independent oil and natural gas company, engages in the exploration, development, and production of crude oil, natural gas, and natural gas liquids reserves in the Permian Basin in West Texas and Eastern New Mexico. The company was incorporated in 2019 and is headquartered in Fort Worth, Texas.