Financial Survey: Legacy Reserves (OTCMKTS:LGCYQ) & Chord Energy (NASDAQ:CHRD)

Chord Energy (NASDAQ:CHRD) and Legacy Reserves (OTCMKTS:LGCYQ) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

97.8% of Chord Energy shares are held by institutional investors. 0.7% of Chord Energy shares are held by company insiders. Comparatively, 0.8% of Legacy Reserves shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Chord Energy and Legacy Reserves’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chord Energy	0.91%	6.71%	4.26%
Legacy Reserves	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current recommendations and price targets for Chord Energy and Legacy Reserves, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chord Energy	2	4	8	0	2.43
Legacy Reserves	0	0	0	0	0.00

Chord Energy currently has a consensus price target of $125.91, indicating a potential upside of 2.18%. Given Chord Energy’s stronger consensus rating and higher possible upside, research analysts plainly believe Chord Energy is more favorable than Legacy Reserves.

Earnings and Valuation

This table compares Chord Energy and Legacy Reserves”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chord Energy	$4.88 billion	1.44	$44.46 million	$0.63	195.59
Legacy Reserves	N/A	N/A	N/A	N/A	N/A

Chord Energy has higher revenue and earnings than Legacy Reserves.

Summary

Chord Energy beats Legacy Reserves on 8 of the 9 factors compared between the two stocks.

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.

About Legacy Reserves

Legacy Reserves Inc., an independent energy company, engages in the acquisition, development, and production of oil and natural gas properties in the United States. It focuses on the horizontal development of unconventional plays in the Permian Basin and the management of shallow-decline oil and natural gas wells in the regions of Permian Basin, East Texas, Rocky Mountain, and Mid-Continent. As of December 31, 2018, the company had proved reserves of approximately 164.9 million barrels of crude oil equivalent covering natural gas, as well as oil and natural gas liquids. Legacy Reserves Inc. was founded in 2005 and is based in Midland, Texas. On June 18, 2019, Legacy Reserves Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.