Cenovus Energy (NYSE: CVE) and ENI S.p.A. (NYSE:E) are both large-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of current recommendations for Cenovus Energy and ENI S.p.A., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cenovus Energy 2 3 8 0 2.46
ENI S.p.A. 5 3 4 0 1.92

Cenovus Energy currently has a consensus price target of $18.07, suggesting a potential upside of 85.92%. ENI S.p.A. has a consensus price target of $16.00, suggesting a potential downside of 51.38%. Given Cenovus Energy’s stronger consensus rating and higher probable upside, research analysts clearly believe Cenovus Energy is more favorable than ENI S.p.A..

Insider and Institutional Ownership

56.2% of Cenovus Energy shares are owned by institutional investors. Comparatively, 1.7% of ENI S.p.A. shares are owned by institutional investors. 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.

Dividends

Cenovus Energy pays an annual dividend of $0.16 per share and has a dividend yield of 1.6%. ENI S.p.A. pays an annual dividend of $1.31 per share and has a dividend yield of 4.0%. Cenovus Energy pays out 8.9% of its earnings in the form of a dividend. ENI S.p.A. pays out 319.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Cenovus Energy and ENI S.p.A.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cenovus Energy 17.89% 3.20% 1.46%
ENI S.p.A. 1.14% 2.23% 0.94%

Volatility & Risk

Cenovus Energy has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, ENI S.p.A. has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.

Earnings and Valuation

This table compares Cenovus Energy and ENI S.p.A.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cenovus Energy $12.32 billion 0.97 $1.83 billion $1.80 5.40
ENI S.p.A. $75.34 billion 0.80 $13.30 billion $0.41 80.27

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

Summary

Cenovus Energy beats ENI S.p.A. on 10 of the 15 factors compared between the two stocks.

About Cenovus Energy

Cenovus Energy Inc is a Canada-based integrated oil company. It operates in the business of developing, producing and marketing crude oil, Natural Gas Liquids (NGLs) and natural gas in Canada. The Company also conducts marketing activities and owns refining interests in the United States (U.S.). Its segments include: Oil Sands, which includes the development and production of bitumen and natural gas in northeast Alberta; Conventional, which includes the development and production of conventional crude oil, NGLs and natural gas in Alberta and Saskatchewan, including the heavy oil assets at Pelican Lake, the carbon dioxide (CO2) enhanced oil recovery (EOR) project at Weyburn and emerging tight oil opportunities; Refining and Marketing, which includes transporting and selling crude oil and natural gas and joint ownership of refineries in the U.S., as well as Corporate and Eliminations.

About ENI S.p.A.

Eni SpA (Eni) is an Italy-based company engaged in the exploration, development and production of hydrocarbons, in the supply and marketing of gas, liquefied natural gas (LNG) and power, in the refining and marketing of petroleum products, in the production and marketing of basic petrochemicals, plastics and elastomers and in commodity trading. The Company’s segments include Exploration & Production, Gas & Power, and Refining & Marketing. Its Exploration & Production segment engages in oil and natural gas exploration and field development and production, as well as LNG operations in over 40 countries, including Italy, Libya, Egypt, Norway, the United Kingdom, Angola, Congo, Nigeria, the United States, Kazakhstan, Algeria, Australia, Venezuela, Iraq, Ghana and Mozambique. Its Gas & Power segment engages in supply, trading and marketing of gas, LNG and electricity, international gas transport activities and commodity trading and derivatives.

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