Analyzing Chord Energy (NASDAQ:CHRD) & Barnwell Industries (NYSE:BRN)

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

Dividends

Barnwell Industries pays an annual dividend of $0.01 per share and has a dividend yield of 0.6%. Chord Energy pays an annual dividend of $5.00 per share and has a dividend yield of 4.1%. Barnwell Industries pays out -2.6% 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Barnwell Industries and Chord Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Barnwell Industries	0	0	0	0	0.00
Chord Energy	0	2	10	1	2.92

Chord Energy has a consensus target price of $188.45, indicating a potential upside of 54.84%. Given Chord Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Chord Energy is more favorable than Barnwell Industries.

Risk and Volatility

Barnwell Industries has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500. Comparatively, Chord Energy has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Barnwell Industries	-15.55%	-22.12%	-11.23%
Chord Energy	19.74%	12.88%	8.91%

Earnings & Valuation

This table compares Barnwell Industries and Chord Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Barnwell Industries	$24.30 million	0.67	-$960,000.00	($0.38)	-4.26
Chord Energy	$3.90 billion	1.91	$1.02 billion	$19.42	6.27

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

Institutional & Insider Ownership

40.7% of Barnwell Industries shares are held by institutional investors. Comparatively, 97.8% of Chord Energy shares are held by institutional investors. 17.6% of Barnwell Industries shares are held by company insiders. Comparatively, 0.7% of Chord Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Chord Energy beats Barnwell Industries on 15 of the 17 factors compared between the two stocks.

About Barnwell Industries

Barnwell Industries, Inc. acquires, develops, produces, and sells oil and natural gas in Canada. The company operates through three segments: Oil and Natural Gas, Land Investment, and Contract Drilling. It also acquires and develops crude oil and natural gas assets in the province of Alberta, as well as invests in land interests in Hawaii. In addition, the company owns and operates threes water well drilling rigs, two pump rigs, and other ancillary drilling and pump equipment; and drills water and water monitoring wells of varying depths. Further, it installs and repairs water pumping systems; and distributes trillium flow technologies. Barnwell Industries, Inc. was incorporated in 1956 and is based in Honolulu, Hawaii.

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.