PetroChina (PTR) vs. Lonestar Resources US (LONE) Financial Analysis

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

Profitability

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

Net Margins Return on Equity Return on Assets
Lonestar Resources US -38.32% -3.67% -1.11%
PetroChina 2.35% 4.18% 2.41%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Lonestar Resources US and PetroChina, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lonestar Resources US 0 0 6 0 3.00
PetroChina 0 1 7 0 2.88

Lonestar Resources US currently has a consensus target price of $11.50, suggesting a potential upside of 57.32%. PetroChina has a consensus target price of $94.35, suggesting a potential upside of 27.25%. Given Lonestar Resources US’s stronger consensus rating and higher possible upside, equities analysts clearly believe Lonestar Resources US is more favorable than PetroChina.

Dividends

PetroChina pays an annual dividend of $1.72 per share and has a dividend yield of 2.3%. Lonestar Resources US does not pay a dividend. PetroChina pays out 96.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

45.8% of Lonestar Resources US shares are owned by institutional investors. Comparatively, 0.3% of PetroChina shares are owned by institutional investors. 2.3% of Lonestar Resources US shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Lonestar Resources US has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500. Comparatively, PetroChina has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.

Valuation & Earnings

This table compares Lonestar Resources US and PetroChina’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lonestar Resources US $94.07 million 1.91 -$38.66 million ($0.42) -17.40
PetroChina $298.35 billion 0.45 $3.37 billion $1.78 41.65

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

Summary

PetroChina beats Lonestar Resources US on 10 of the 16 factors compared between the two stocks.

Lonestar Resources US Company Profile

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.

PetroChina Company Profile

PetroChina Company Limited, together with its subsidiaries, engages in a range of petroleum related products, services, and activities in Mainland China and internationally. It operates through Exploration and Production, Refining and Chemicals, Marketing, and Natural Gas and Pipeline segments. The Exploration and Production segment engages in the exploration, development, production, and marketing of crude oil and natural gas. The Refining and Chemicals segment refines crude oil and petroleum products; produces and markets primary petrochemical products, derivative petrochemical products, and other chemical products. The Marketing segment is involved in marketing of refined products and trading business. The Natural Gas and Pipeline segment engages in the transmission of natural gas, crude oil, and refined products; and sale of natural gas. As of December 31, 2017, the company had a total length of 82,374 km, including 51,315 km of natural gas pipelines, 19,670 km of crude oil pipelines, and 11,389 km of refined product pipelines. It is also involved in the exploration, development, and production of oil sands and coalbed methane; trading of crude oil and petrochemical products; storage, chemical engineering, storage facilities, service station, and transportation facilities and related businesses; import and export of goods and technology; and import and export agency business, as well as provision of technology promotion, professional contractor, and main contractor services. The company was founded in 1988 and is headquartered in Beijing, the People's Republic of China. PetroChina Company Limited is a subsidiary of China National Petroleum Corporation.

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