Analyzing CNOOC (CEO) & Isramco (ISRL)

CNOOC (NYSE:CEO) and Isramco (NASDAQ:ISRL) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.

Analyst Recommendations

This is a summary of current ratings and recommmendations for CNOOC and Isramco, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CNOOC 0 1 4 1 3.00
Isramco 0 0 0 0 N/A

CNOOC currently has a consensus target price of $13.64, suggesting a potential downside of 92.75%. Given CNOOC’s higher possible upside, equities research analysts clearly believe CNOOC is more favorable than Isramco.

Profitability

This table compares CNOOC and Isramco’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CNOOC N/A N/A N/A
Isramco -31.84% -136.35% 13.02%

Risk & Volatility

CNOOC has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Isramco has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.

Valuation & Earnings

This table compares CNOOC and Isramco’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CNOOC $27.58 billion 3.04 $3.79 billion $9.30 20.23
Isramco $65.95 million 5.04 -$24.31 million N/A N/A

CNOOC has higher revenue and earnings than Isramco.

Institutional and Insider Ownership

1.8% of CNOOC shares are held by institutional investors. Comparatively, 5.0% of Isramco shares are held by institutional investors. 73.3% of Isramco shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

CNOOC pays an annual dividend of $6.84 per share and has a dividend yield of 3.6%. Isramco does not pay a dividend. CNOOC pays out 73.5% of its earnings in the form of a dividend.

Summary

CNOOC beats Isramco on 9 of the 15 factors compared between the two stocks.

CNOOC Company Profile

CNOOC Limited, an investment holding company, explores for, develops, produces, and sells crude oil, natural gas, and other petroleum products. It operates through Exploration and Production, and Trading Business segments. The company produces offshore crude oil and natural gas primarily in Bohai, Western South China Sea, Eastern South China Sea, and East China Sea in offshore China. It also holds interests in various oil and gas assets in Asia, Africa, North America, South America, Oceania, and Europe. As of December 31, 2017, the company had net proved reserves of approximately 4.84 billion barrels-of-oil equivalent. In addition, it is involved in the issuance of bonds. The company was incorporated in 1999 and is based in Central, Hong Kong. CNOOC Limited is a subsidiary of China National Offshore Oil Corporation.

Isramco Company Profile

Isramco, Inc., an independent oil and natural gas company, engages in the exploration, development, and production of oil and natural gas properties located onshore in the United States and offshore Israel. It operates in two segments, Oil and Gas Exploration and Production; and Production Services. The Oil and Gas Exploration and Production segment owns working interests in oil and gas wells in Louisiana, Texas, New Mexico, Oklahoma, Wyoming, Utah, and Colorado; and operates approximately 422 producing wells located primarily in Texas and New Mexico. It also has overriding royalty interests in the Tamar Field located in offshore Israel. This segment sells its oil and natural gas to independent marketers, oil and natural gas companies, and gas pipeline companies. The Production Services segment operates a fleet of production servicing rigs and trucks that provide a range of production services, including completion of newly-drilled wells; maintenance and workover of existing wells; fluid transportation; and related oilfield services, as well as plugging and abandonment of wells to oil and gas exploration and production companies. As of December 31, 2017, the company had estimated total proved oil, natural gas reserves, and natural gas liquids, which include approximately 38,653 thousand barrels (MBbls) of oil equivalent comprising 1,765 MBbls of oil; 216,451 million cubic feet of natural gas; and 813 MBbls of natural gas liquids, as well as 33 production servicing rigs primarily in Texas and New Mexico. Isramco, Inc. was founded in 1982 and is based in Houston, Texas.

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