Head to Head Analysis: Chord Energy (NASDAQ:CHRD) and APA (NASDAQ:APA)

APA (NASDAQ:APA) and Chord Energy (NASDAQ:CHRD) are both mid-cap energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Insider & Institutional Ownership

83.0% of APA shares are owned by institutional investors. Comparatively, 97.8% of Chord Energy shares are owned by institutional investors. 0.7% of APA shares are owned by insiders. Comparatively, 0.7% of Chord Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
APA	$9.74 billion	0.92	$804.00 million	$2.99	8.38
Chord Energy	$5.25 billion	1.10	$848.63 million	$3.93	25.55

Chord Energy has lower revenue, but higher earnings than APA. APA is trading at a lower price-to-earnings ratio than Chord Energy, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares APA and Chord Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
APA	10.53%	20.98%	7.21%
Chord Energy	5.02%	9.02%	5.97%

Dividends

APA pays an annual dividend of $1.00 per share and has a dividend yield of 4.0%. Chord Energy pays an annual dividend of $5.20 per share and has a dividend yield of 5.2%. APA pays out 33.4% of its earnings in the form of a dividend. Chord Energy pays out 132.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chord Energy has raised its dividend for 1 consecutive years. Chord Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

APA has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Chord Energy has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for APA and Chord Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
APA	3	13	3	0	2.00
Chord Energy	1	1	10	1	2.85

APA currently has a consensus price target of $23.24, indicating a potential downside of 7.28%. Chord Energy has a consensus price target of $147.15, indicating a potential upside of 46.52%. Given Chord Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Chord Energy is more favorable than APA.

Summary

Chord Energy beats APA on 12 of the 18 factors compared between the two stocks.

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.

About Chord Energy

Chord Energy Corporation operates as an independent exploration and production company in the United States. It acquires, explores, develops, and produces crude oil, natural gas, and natural gas liquids in the Williston Basin. The company sells its products to refiners, marketers, and other purchasers that have access to nearby pipeline and rail facilities. The company was formerly known as Oasis Petroleum Inc. and changed its name to Chord Energy Corporation in July 2022. Chord Energy Corporation was founded in 2007 and is headquartered in Houston, Texas.