Analyzing California Resources (NYSE:CRC) and Carbon Energy (OTCMKTS:CRBO)
by Michael Walen · The Markets DailyCalifornia Resources (NYSE:CRC – Get Free Report) and Carbon Energy (OTCMKTS:CRBO – Get Free Report) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
Volatility & Risk
California Resources has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, Carbon Energy has a beta of -1.98, suggesting that its stock price is 298% less volatile than the S&P 500.
Valuation and Earnings
This table compares California Resources and Carbon Energy”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 | $3.40 billion | 1.67 | $363.00 million | $4.08 | 15.66 |
| Carbon Energy | N/A | N/A | N/A | N/A | N/A |
California Resources has higher revenue and earnings than Carbon Energy.
Institutional & Insider Ownership
97.8% of California Resources shares are owned by institutional investors. 0.5% of California Resources shares are owned by company insiders. Comparatively, 7.1% of Carbon Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and recommmendations for California Resources and Carbon Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| California Resources | 0 | 3 | 9 | 3 | 3.00 |
| Carbon Energy | 0 | 0 | 0 | 0 | 0.00 |
California Resources presently has a consensus price target of $71.20, suggesting a potential upside of 11.46%. Given California Resources’ stronger consensus rating and higher probable upside, equities research analysts clearly believe California Resources is more favorable than Carbon Energy.
Profitability
This table compares California Resources and Carbon Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| California Resources | 9.89% | 10.23% | 5.19% |
| Carbon Energy | N/A | N/A | N/A |
Summary
California Resources beats Carbon Energy on 10 of the 11 factors compared between the two stocks.
About California Resources
California Resources Corporation operates as an independent oil and natural gas exploration and production, and carbon management company in the United States. The company explores, produces, and markets crude oil, natural gas, and natural gas liquids for marketers, California refineries, and other purchasers that have access to transportation and storage facilities. It also engages in the generation and sale of electricity to the wholesale power market and utility sector; and developing various carbon capture and storage projects in California. The company was incorporated in 2014 and is based in Long Beach, California.
About Carbon Energy
Carbon Energy Corporation, an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids properties in the United States. It focuses on conventional and unconventional reservoirs, including shale, tight sand, and coalbed methane located in the Appalachian, Illinois, and Ventura Basins. It owns working interests and royalty interests in wells located in California, Illinois, Indiana, Kentucky, Ohio, Tennessee, Virginia, and West Virginia, as well as had leasehold positions. The company was formerly known as Carbon Natural Gas Company and changed its name to Carbon Energy Corporation in June 2018. Carbon Energy Corporation was founded in 2007 and is based in Denver, Colorado.