Chesapeake Energy (OTCMKTS:CHKAQ) vs. Sable Offshore (NYSE:SOC) Financial Review

Chesapeake Energy (OTCMKTS:CHKAQ) and Sable Offshore (NYSE:SOC) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Insider and Institutional Ownership

2.0% of Chesapeake Energy shares are owned by institutional investors. Comparatively, 26.2% of Sable Offshore shares are owned by institutional investors. 1.1% of Chesapeake Energy shares are owned by insiders. Comparatively, 14.3% of Sable Offshore shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Chesapeake Energy has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Sable Offshore has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Chesapeake Energy and Sable Offshore, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chesapeake Energy	0	0	0	0	0.00
Sable Offshore	1	0	4	0	2.60

Sable Offshore has a consensus target price of $25.00, suggesting a potential upside of 6.47%. Given Sable Offshore’s stronger consensus rating and higher probable upside, analysts clearly believe Sable Offshore is more favorable than Chesapeake Energy.

Profitability

This table compares Chesapeake Energy and Sable Offshore’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chesapeake Energy	-162.46%	N/A	-3.45%
Sable Offshore	N/A	-319.58%	-39.11%

Earnings & Valuation

This table compares Chesapeake Energy and Sable Offshore”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chesapeake Energy	$8.49 billion	0.00	-$308.00 million	($54.00)	-0.06
Sable Offshore	N/A	N/A	-$32.18 million	N/A	N/A

Sable Offshore has lower revenue, but higher earnings than Chesapeake Energy.

Summary

Sable Offshore beats Chesapeake Energy on 7 of the 11 factors compared between the two stocks.

About Chesapeake Energy

Chesapeake Energy Corp. is an independent exploration and production company, which engages in acquisition, exploration and development of properties for the production of oil, natural gas and natural gas liquids from underground reservoirs. It focuses on projects located in Louisiana, Ohio, Oklahoma, Pennsylvania, Texas, and Wyoming. The company was founded by Aubrey K. McClendon and Tom L. Ward on May 18, 1989 and is headquartered in Oklahoma City, OK.

About Sable Offshore

Sable Offshore Corp. engages in the oil and gas exploration and development activities in the United States. The company operates through three platforms located in federal waters offshore California. It owns and operates 16 federal leases across approximately 76,000 acres and subsea pipelines, which transport crude oil, natural gas, and produced water from the platforms to the onshore processing facilities. The company was formerly known as Flame Acquisition Corp. and changed its name to Sable Offshore Corp. in February 2024. Sable Offshore Corp. was incorporated in 2020 and is based in Houston, Texas.