Comparing Vital Energy (NYSE:VTLE) & Canadian Natural Resources (NYSE:CNQ)

Canadian Natural Resources (NYSE:CNQ) and Vital Energy (NYSE:VTLE) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.

Insider & Institutional Ownership

74.0% of Canadian Natural Resources shares are held by institutional investors. Comparatively, 86.5% of Vital Energy shares are held by institutional investors. 5.0% of Canadian Natural Resources shares are held by company insiders. Comparatively, 1.2% of Vital Energy shares are held 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Canadian Natural Resources and Vital Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Natural Resources	0	4	0	0	2.00
Vital Energy	2	6	3	0	2.09

Canadian Natural Resources presently has a consensus price target of $51.00, indicating a potential upside of 56.06%. Vital Energy has a consensus price target of $46.00, indicating a potential upside of 34.15%. Given Canadian Natural Resources’ higher possible upside, equities analysts clearly believe Canadian Natural Resources is more favorable than Vital Energy.

Volatility & Risk

Canadian Natural Resources has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, Vital Energy has a beta of 3.16, indicating that its stock price is 216% more volatile than the S&P 500.

Profitability

This table compares Canadian Natural Resources and Vital Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian Natural Resources	18.45%	20.07%	10.51%
Vital Energy	25.09%	9.05%	4.65%

Earnings & Valuation

This table compares Canadian Natural Resources and Vital Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canadian Natural Resources	$41.12 billion	1.67	$6.10 billion	$2.57	12.72
Vital Energy	$1.86 billion	0.70	$695.08 million	$14.28	2.40

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

Summary

Canadian Natural Resources beats Vital Energy on 8 of the 14 factors compared between the two stocks.

About Canadian Natural Resources

Canadian Natural Resources Limited acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs). The company offers light and medium crude oil, primary heavy crude oil, Pelican Lake heavy crude oil, bitumen (thermal oil), and synthetic crude oil (SCO). The company’s midstream assets include two pipeline systems; and a 50% working interest in an 84-megawatt cogeneration plant at Primrose. It operates primarily in Western Canada; the United Kingdom portion of the North Sea; and Offshore Africa. The company was formerly known as AEX Minerals Corporation and changed its name to Canadian Natural Resources Limited in December 1975. Canadian Natural Resources Limited was incorporated in 1973 and is headquartered in Calgary, Canada.

About Vital Energy

Vital Energy, Inc., an independent energy company, engages in the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas, the United States. The company was formerly known as Laredo Petroleum, Inc. and changed its name to Vital Energy, Inc. in January 2023. Vital Energy, Inc. was founded in 2006 and is headquartered in Tulsa, Oklahoma.