Critical Review: Repsol (OTCMKTS:REPYY) versus Chord Energy (NASDAQ:CHRD)

Repsol (OTCMKTS:REPYY) and Chord Energy (NASDAQ:CHRD) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Repsol and Chord Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Repsol	$63.35 billion	0.23	$3.43 billion	$1.90	6.27
Chord Energy	$4.76 billion	1.53	$1.02 billion	$19.42	6.14

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

Insider and Institutional Ownership

0.3% of Repsol shares are owned by institutional investors. Comparatively, 97.8% of Chord Energy shares are owned by institutional investors. 1.0% of Repsol shares are owned by company insiders. Comparatively, 0.7% of Chord Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Repsol	3.74%	13.09%	6.21%
Chord Energy	19.74%	12.88%	8.91%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Repsol and Chord Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Repsol	0	4	1	1	2.50
Chord Energy	0	2	10	1	2.92

Chord Energy has a consensus price target of $187.82, suggesting a potential upside of 57.46%. Given Chord Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Chord Energy is more favorable than Repsol.

Risk & Volatility

Repsol has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Chord Energy has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.

Dividends

Repsol pays an annual dividend of $0.86 per share and has a dividend yield of 7.2%. Chord Energy pays an annual dividend of $5.00 per share and has a dividend yield of 4.2%. Repsol pays out 45.3% of its earnings in the form of a dividend. Chord Energy pays out 25.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Chord Energy beats Repsol on 10 of the 16 factors compared between the two stocks.

About Repsol

Repsol, S.A. operates as a multi-e energy company worldwide. Its Upstream segment engages in the exploration, development, and production of crude oil and natural gas reserves, as well as develops low-carbon geological solutions. The company's Industrial segment is involved in refining activities and petrochemicals business; the trading, transport, and sale of crude oil, natural gas, and fuels; and development of hydrogen, biomethane, sustainable biofuels, and synthetic fuels. Its Customer segment is involved in mobility; and sale of fuel products, electricity and gas, lubricants, and other specialties. The company's Low-Carbon Generation segment engages in the low-emissions electricity generation and renewable sources. The company also offers asphalt products; installs, operates, and manages service stations; provides maritime services; constructs and operates oil refineries; explores and produces hydrocarbons; offers human resource; distributes and supplies electricity; and develops new energy projects, solar, and wind projects, as well as produces and sells chemical products and lubricants. In addition, it is involved in fuel and special products sale, research, trading and transport, insurance and reinsurance, safety, and financing activities; development of production processes, storage, transport, use, consumption, and transformation of hydrogen; decarbonization activities; and promotion, design, construction, and operation of molecular recycling facilities. Further, the company produces synthetic oil cloths; and invests in liquefaction plant project. The company was formerly known as Repsol YPF, S.A. and changed its name to Repsol, S.A. in May 2012. Repsol, S.A. was founded in 1927 and is headquartered in Madrid, Spain.

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.