RWE Aktiengesellschaft (OTCMKTS:RWEOY – Get Free Report) and Chesapeake Energy (OTCMKTS:CHKAQ – Get Free Report) are both utilities companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.
Institutional & Insider Ownership
2.0% of Chesapeake Energy shares are held by institutional investors. 1.1% of Chesapeake Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares RWE Aktiengesellschaft and Chesapeake Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RWE Aktiengesellschaft | 12.03% | 8.16% | 2.75% |
| Chesapeake Energy | -162.46% | N/A | -3.45% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RWE Aktiengesellschaft | 0 | 1 | 0 | 1 | 3.00 |
| Chesapeake Energy | 0 | 0 | 0 | 0 | 0.00 |
Volatility and Risk
RWE Aktiengesellschaft has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Chesapeake Energy has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.
Earnings and Valuation
This table compares RWE Aktiengesellschaft and Chesapeake Energy”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RWE Aktiengesellschaft | $30.91 billion | 0.65 | $1.57 billion | $4.12 | 7.18 |
| Chesapeake Energy | $8.49 billion | 0.00 | -$308.00 million | ($54.00) | -0.06 |
RWE Aktiengesellschaft has higher revenue and earnings than Chesapeake Energy. Chesapeake Energy is trading at a lower price-to-earnings ratio than RWE Aktiengesellschaft, indicating that it is currently the more affordable of the two stocks.
Summary
RWE Aktiengesellschaft beats Chesapeake Energy on 10 of the 13 factors compared between the two stocks.
About RWE Aktiengesellschaft
RWE Aktiengesellschaft generates and supplies electricity from renewable and conventional sources in Germany, the United Kingdom, rest of Europe, North America, and internationally. It operates through five segments: Offshore Wind; Onshore Wind/Solar; Hydro/Biomass/Gas; Supply & Trading; and Coal/Nuclear. The company generates wind, hydro, solar, nuclear, gas, and biomass electricity. It also trades in electricity, gas, and energy commodities; operates gas storage facilities; and engages in battery storage activities. The company serves commercial, industrial, and corporate customers. RWE Aktiengesellschaft was founded in 1898 and is headquartered in Essen, Germany.
About Chesapeake Energy
Chesapeake Energy Corp. is an independent exploration and production company, which engages in acquisition, exploration and development of properties for the production of oil, natural gas and natural gas liquids from underground reservoirs. It focuses on projects located in Louisiana, Ohio, Oklahoma, Pennsylvania, Texas, and Wyoming. The company was founded by Aubrey K. McClendon and Tom L. Ward on May 18, 1989 and is headquartered in Oklahoma City, OK.
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