Chesapeake Energy (NASDAQ:EXE – Get Free Report) and Repsol (OTCMKTS:REPYY – Get Free Report) are both large-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.
Volatility & Risk
Chesapeake Energy has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, Repsol has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings for Chesapeake Energy and Repsol, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chesapeake Energy | 0 | 3 | 4 | 1 | 2.75 |
| Repsol | 0 | 4 | 1 | 1 | 2.50 |
Profitability
This table compares Chesapeake Energy and Repsol’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chesapeake Energy | 6.07% | 2.74% | 2.08% |
| Repsol | 3.74% | 13.09% | 6.21% |
Earnings & Valuation
This table compares Chesapeake Energy and Repsol”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chesapeake Energy | $4.03 billion | 5.66 | $2.42 billion | $1.62 | 60.96 |
| Repsol | $63.35 billion | 0.24 | $3.43 billion | $1.90 | 6.54 |
Repsol has higher revenue and earnings than Chesapeake Energy. Repsol is trading at a lower price-to-earnings ratio than Chesapeake Energy, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
97.9% of Chesapeake Energy shares are owned by institutional investors. Comparatively, 0.3% of Repsol shares are owned by institutional investors. 58.0% of Chesapeake Energy shares are owned by company insiders. Comparatively, 1.0% of Repsol shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Dividends
Chesapeake Energy pays an annual dividend of $2.30 per share and has a dividend yield of 2.3%. Repsol pays an annual dividend of $0.86 per share and has a dividend yield of 6.9%. Chesapeake Energy pays out 142.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Repsol pays out 45.3% of its earnings in the form of a dividend. Repsol is clearly the better dividend stock, given its higher yield and lower payout ratio.
About Chesapeake 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.
About Repsol
Repsol, S.A. operates as a multi-e energy company worldwide. Its Upstream segment engages in the exploration, development, and production of crude oil and natural gas reserves, as well as develops low-carbon geological solutions. The company's Industrial segment is involved in refining activities and petrochemicals business; the trading, transport, and sale of crude oil, natural gas, and fuels; and development of hydrogen, biomethane, sustainable biofuels, and synthetic fuels. Its Customer segment is involved in mobility; and sale of fuel products, electricity and gas, lubricants, and other specialties. The company's Low-Carbon Generation segment engages in the low-emissions electricity generation and renewable sources. The company also offers asphalt products; installs, operates, and manages service stations; provides maritime services; constructs and operates oil refineries; explores and produces hydrocarbons; offers human resource; distributes and supplies electricity; and develops new energy projects, solar, and wind projects, as well as produces and sells chemical products and lubricants. In addition, it is involved in fuel and special products sale, research, trading and transport, insurance and reinsurance, safety, and financing activities; development of production processes, storage, transport, use, consumption, and transformation of hydrogen; decarbonization activities; and promotion, design, construction, and operation of molecular recycling facilities. Further, the company produces synthetic oil cloths; and invests in liquefaction plant project. The company was formerly known as Repsol YPF, S.A. and changed its name to Repsol, S.A. in May 2012. Repsol, S.A. was founded in 1927 and is headquartered in Madrid, Spain.
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