Analyzing Lonestar Resources US (LONE) & CNX Resources (CNX)

Lonestar Resources US (NASDAQ:LONE) and CNX Resources (NYSE:CNX) are both oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.

Institutional & Insider Ownership

46.6% of Lonestar Resources US shares are held by institutional investors. Comparatively, 95.6% of CNX Resources shares are held by institutional investors. 2.3% of Lonestar Resources US shares are held by insiders. Comparatively, 2.0% of CNX Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Lonestar Resources US and CNX Resources, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lonestar Resources US 0 0 6 0 3.00
CNX Resources 2 3 6 0 2.36

Lonestar Resources US currently has a consensus price target of $11.50, indicating a potential upside of 48.20%. CNX Resources has a consensus price target of $21.44, indicating a potential upside of 54.05%. Given CNX Resources’ higher possible upside, analysts clearly believe CNX Resources is more favorable than Lonestar Resources US.

Profitability

This table compares Lonestar Resources US and CNX Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lonestar Resources US -37.79% -5.39% -1.62%
CNX Resources 40.07% 2.37% 1.33%

Volatility & Risk

Lonestar Resources US has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, CNX Resources has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.

Earnings and Valuation

This table compares Lonestar Resources US and CNX Resources’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lonestar Resources US $94.07 million 2.03 -$38.66 million ($0.42) -18.48
CNX Resources $1.46 billion 2.04 $380.74 million ($0.16) -87.00

CNX Resources has higher revenue and earnings than Lonestar Resources US. CNX Resources is trading at a lower price-to-earnings ratio than Lonestar Resources US, indicating that it is currently the more affordable of the two stocks.

Dividends

CNX Resources pays an annual dividend of $0.13 per share and has a dividend yield of 0.9%. Lonestar Resources US does not pay a dividend. CNX Resources pays out -81.3% of its earnings in the form of a dividend.

Summary

CNX Resources beats Lonestar Resources US on 12 of the 15 factors compared between the two stocks.

About Lonestar Resources US

Lonestar Resources US Inc., an independent oil and gas company, engages in the acquisition, development, and production of unconventional oil, natural gas liquids, and natural gas properties in the United States. The company primarily focuses on Eagle Ford Shale properties in Texas counties. Lonestar Resources US Inc. was incorporated in 2015 and is headquartered in Fort Worth, Texas.

About CNX Resources

CNX Resources Corporation, an independent oil and natural gas company, explores for, develops, and produces natural gas in the Appalachian Basin. As of December 31, 2017, it had 7.6 trillion cubic feet equivalent of proved natural gas reserves. The company also owns, operates, and develops natural gas gathering and other midstream energy assets in the Marcellus Shale in Pennsylvania and West Virginia. In addition, it offers gas gathering and water delivery solutions, as well as land services to third-parties. The company was formerly known as CONSOL Energy Inc. and changed its name to CNX Resources Corporation in November 2017. CNX Resources Corporation was incorporated in 1991 and is headquartered in Canonsburg, Pennsylvania.

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