Head-To-Head Review: Isramco (NASDAQ:ISRL) & Cenovus Energy (NASDAQ:CVE)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Isramco 17.35% -263.45% 13.05%
Cenovus Energy 10.38% 2.43% 1.27%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Isramco and Cenovus Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Isramco 0 0 0 0 N/A
Cenovus Energy 0 2 7 0 2.78

Cenovus Energy has a consensus price target of $14.71, suggesting a potential upside of 86.02%. Given Cenovus Energy’s higher probable upside, analysts clearly believe Cenovus Energy is more favorable than Isramco.

Valuation & Earnings

This table compares Isramco and Cenovus Energy’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Isramco $81.34 million 4.07 $17.93 million N/A N/A
Cenovus Energy $15.21 billion 0.64 $1.65 billion $0.28 28.25

Cenovus Energy has higher revenue and earnings than Isramco.

Risk and Volatility

Isramco has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, Cenovus Energy has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.

Insider & Institutional Ownership

5.1% of Isramco shares are owned by institutional investors. Comparatively, 66.9% of Cenovus Energy shares are owned by institutional investors. 73.3% of Isramco shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Cenovus Energy beats Isramco on 7 of the 12 factors compared between the two stocks.

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, 2018, the company had estimated total proved oil, natural gas reserves, and natural gas liquids, which include approximately 40,267 thousand barrels (MBbls) of oil equivalent comprising 2,125 MBbls of oil; 223,915 million cubic feet of natural gas; and 823 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.

Cenovus Energy Company Profile

Cenovus Energy Inc., together with its subsidiaries, develops, produces, and markets crude oil, natural gas liquids, and natural gas in Canada and the United States. The company's Oil Sands segment develops and produces bitumen in northeast Alberta. This segment's bitumen assets include Foster Creek, Christina Lake, and Narrows Lake, as well as other projects in the early stages of development, such as Telephone Lake. This segment also holds the Athabasca natural gas assets. Its Deep Basin segment holds assets primarily located in Elmworth-Wapiti, Kaybob-Edson, and Clearwater operating areas of British Columbia and Alberta, and include interests in natural gas processing facilities. The company's Refining and Marketing segment transports, sells, and refines crude oil into petroleum and chemical products. This segment owns a 50% interest ownership in two refineries in the United States; owns and operates a crude-by-rail terminal in Alberta; and markets third-party purchases and sales of product. Cenovus Energy Inc. is headquartered in Calgary, Canada.

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