Chesapeake Granite Wash Trust (NYSE: CHKR) is one of 217 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it contrast to its peers? We will compare Chesapeake Granite Wash Trust to similar businesses based on the strength of its profitability, institutional ownership, analyst recommendations, valuation, risk, dividends and earnings.

Earnings and Valuation

This table compares Chesapeake Granite Wash Trust and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Chesapeake Granite Wash Trust $12.43 million $12.48 million 5.39
Chesapeake Granite Wash Trust Competitors $1.86 billion -$439.03 million -11.23

Chesapeake Granite Wash Trust’s peers have higher revenue, but lower earnings than Chesapeake Granite Wash Trust. Chesapeake Granite Wash Trust is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Chesapeake Granite Wash Trust pays an annual dividend of $0.26 per share and has a dividend yield of 12.7%. Chesapeake Granite Wash Trust pays out 68.4% of its earnings in the form of a dividend. As a group, “Oil & Gas Exploration and Production” companies pay a dividend yield of 1.7% and pay out 174.2% of their earnings in the form of a dividend. Chesapeake Granite Wash Trust is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Chesapeake Granite Wash Trust and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chesapeake Granite Wash Trust 0 0 0 0 N/A
Chesapeake Granite Wash Trust Competitors 1472 7514 12253 260 2.53

As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 38.75%. Given Chesapeake Granite Wash Trust’s peers higher possible upside, analysts clearly believe Chesapeake Granite Wash Trust has less favorable growth aspects than its peers.

Risk and Volatility

Chesapeake Granite Wash Trust has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, Chesapeake Granite Wash Trust’s peers have a beta of 1.39, meaning that their average stock price is 39% more volatile than the S&P 500.

Institutional and Insider Ownership

1.1% of Chesapeake Granite Wash Trust shares are owned by institutional investors. Comparatively, 61.0% of shares of all “Oil & Gas Exploration and Production” companies are owned by institutional investors. 12.5% of shares of all “Oil & Gas Exploration and Production” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Chesapeake Granite Wash Trust and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chesapeake Granite Wash Trust 84.71% 43.81% 43.81%
Chesapeake Granite Wash Trust Competitors -250.09% 25.68% 6.37%

Summary

Chesapeake Granite Wash Trust beats its peers on 7 of the 12 factors compared.

Chesapeake Granite Wash Trust Company Profile

Chesapeake Granite Wash Trust (the Trust) is a trust formed to own royalty interests for the benefit of Trust unit holders. The royalty interests held by the Trust (Royalty Interests) are derived from Chesapeake Energy Corporation’s (Chesapeake) interests in specified oil and natural gas properties located in the Colony Granite Wash play in Washita County. Chesapeake conveyed the Royalty Interests to the Trust from its interests in approximately 70 existing horizontal wells (Producing Wells) and Chesapeake’s interests in over 120 horizontal development wells (Development Wells) to be drilled on properties within the Area of Mutual Interest (AMI). The AMI lies within Washita County in western Oklahoma and is limited to Colony Granite Wash formation, where Chesapeake holds approximately 40,500 gross acres. Chesapeake has drilled and completed over 90 wells within the AMI. The Colony Granite Wash is located at the eastern end of Des Moines-age granite wash fields.

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