Critical Review: Cenovus Energy (NYSE:CVE) versus BKV (NYSE:BKV)

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

Profitability

This table compares Cenovus Energy and BKV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cenovus Energy	15.40%	26.15%	13.36%
BKV	12.87%	6.12%	3.20%

Risk and Volatility

Cenovus Energy has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500. Comparatively, BKV has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.

Insider and Institutional Ownership

51.2% of Cenovus Energy shares are owned by institutional investors. 2.5% of BKV shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Cenovus Energy and BKV”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cenovus Energy	$58.03 billion	0.86	$2.81 billion	$3.39	8.13
BKV	$1.36 billion	1.48	$179.16 million	$2.11	8.72

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Cenovus Energy and BKV, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cenovus Energy	0	1	13	2	3.06
BKV	0	2	8	1	2.91

Cenovus Energy presently has a consensus price target of $39.00, suggesting a potential upside of 41.43%. BKV has a consensus price target of $33.33, suggesting a potential upside of 81.18%. Given BKV’s higher possible upside, analysts plainly believe BKV is more favorable than Cenovus Energy.

Summary

Cenovus Energy beats BKV on 10 of the 15 factors compared between the two stocks.

About Cenovus Energy

Cenovus Energy Inc., together with its subsidiaries, develops, produces, refines, transports, and markets crude oil, natural gas, and refined petroleum products in Canada and internationally. The company operates through Oil Sands, Conventional, Offshore, Canadian Refining, and U.S. Refining segments. The Oil Sands segment develops and produces bitumen and heavy oil in northern Alberta and Saskatchewan. This segment assets include Foster Creek, Christina Lake, and Sunrise projects, as well as Lloydminster thermal and conventional heavy oil assets. The Conventional segment holds natural gas liquids and natural gas assets primarily located in Elmworth-Wapiti, Kaybob-Edson, Clearwater, and Rainbow Lake operating in Alberta and British Columbia, as well as interests in various natural gas processing facilities. The offshore segment engages in offshore operation, exploration, and development activities in China and the East Coast of Canada. The Canadian Refining segment owns and operates Lloydminster upgrading and asphalt refining complex, which converts heavy oil and bitumen into synthetic crude oil, diesel, asphalt, and other ancillary products, as well as Bruderheim crude-by-rail terminal and ethanol plants. The U.S. Refining segment refines crude oil to produce gasoline, diesel, jet fuel, asphalt, and other products. Cenovus Energy Inc. is headquartered in Calgary, Canada.

About BKV

BKV Corporation engages in the acquisition, operation, and development of natural gas and NGL properties. It is also involved in the gathering, processing, and transportation of natural gas. The company was founded in 2015 and is based in Denver, Colorado with additional offices in Tunkhannock, Pennsylvania and Fort Worth, Texas. BKV Corporation, LLC operates as a subsidiary of Banpu North America Corporation.