APA (NASDAQ:APA) and California Resources (OTCMKTS:CRCQQ) Critical Contrast

California Resources (OTCMKTS:CRCQQ) and APA (NASDAQ:APA) are both oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.

Analyst Ratings

This is a summary of recent recommendations for California Resources and APA, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
California Resources	0	0	0	0	0.00
APA	4	10	5	1	2.15

APA has a consensus price target of $32.81, indicating a potential upside of 46.28%. Given APA’s stronger consensus rating and higher probable upside, analysts plainly believe APA is more favorable than California Resources.

Valuation & Earnings

This table compares California Resources and APA”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
California Resources	$2.63 billion	0.00	-$28.00 million	N/A	N/A
APA	$8.19 billion	1.01	$2.86 billion	$7.08	3.17

APA has higher revenue and earnings than California Resources.

Profitability

This table compares California Resources and APA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
California Resources	-95.33%	-4.31%	-3.78%
APA	24.36%	27.86%	7.99%

Insider and Institutional Ownership

35.7% of California Resources shares are held by institutional investors. Comparatively, 83.0% of APA shares are held by institutional investors. 4.1% of California Resources shares are held by insiders. Comparatively, 1.3% of APA shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

APA beats California Resources on 12 of the 13 factors compared between the two stocks.

About California Resources

California Resources Corporation operates as an oil and natural gas exploration and production company in the State of California. The company sells crude oil, natural gas, and natural gas liquids to marketers, California refineries, and other purchasers that have access to transportation and storage facilities. It holds interests in approximately 2.2 million net acres of mineral acreage. As of December 31, 2019, the company had net proved reserves of 644 million barrels of oil equivalent. It also engages in the generation and sale of electricity to the grid and utility customers. The company was founded in 2014 and is based in Los Angeles, California. On July 15, 2020, California Resources Corporation, along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.

About APA

APA Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids. It has oil and gas operations in the United States, Egypt, and North Sea. The company also has exploration and appraisal activities in Suriname, as well as holds interests in projects located in Uruguay and internationally. APA Corporation was incorporated in 1954 and is headquartered in Houston, Texas.