New Fortress Energy (NASDAQ:NFE) and Ovintiv (NYSE:OVV) Head-To-Head Survey

Ovintiv (NYSE:OVV) and New Fortress Energy (NASDAQ:NFE) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, dividends, earnings and risk.

Risk and Volatility

Ovintiv has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, New Fortress Energy has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500.

Earnings & Valuation

This table compares Ovintiv and New Fortress Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ovintiv	$8.91 billion	2.24	$1.24 billion	$3.54	20.44
New Fortress Energy	$1.50 billion	0.01	-$1.84 billion	($135.00)	-0.03

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Ovintiv and New Fortress Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ovintiv	0	4	20	1	2.88
New Fortress Energy	1	1	0	0	1.50

Ovintiv currently has a consensus target price of $71.45, indicating a potential downside of 1.24%. Given Ovintiv’s stronger consensus rating and higher probable upside, equities analysts clearly believe Ovintiv is more favorable than New Fortress Energy.

Profitability

This table compares Ovintiv and New Fortress Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ovintiv	9.43%	14.84%	8.11%
New Fortress Energy	-149.40%	-795.34%	-17.27%

Institutional and Insider Ownership

83.8% of Ovintiv shares are held by institutional investors. Comparatively, 58.6% of New Fortress Energy shares are held by institutional investors. 0.9% of Ovintiv shares are held by company insiders. Comparatively, 29.4% of New Fortress Energy shares are held 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.

Summary

Ovintiv beats New Fortress Energy on 13 of the 15 factors compared between the two stocks.

About Ovintiv

Ovintiv Inc., together with its subsidiaries, explores, develops, produces, and markets natural gas, oil, and natural gas liquids in the United States and Canada. The company operates through USA Operations, Canadian Operations, and Market Optimization segments. Its principal assets include Permian in west Texas and Anadarko in west-central Oklahoma; and Montney in northeast British Columbia and northwest Alberta. In addition, the company's upstream assets comprise Bakken in northwest North Dakota, and Uinta in central Utah; and Horn River in northeast British Columbia. The company was formerly known as Encana Corporation and changed its name to Ovintiv Inc. in January 2020. Ovintiv Inc. was incorporated in 2020 and is based in Denver, Colorado.

About New Fortress Energy

New Fortress Energy Inc. operates as an integrated gas-to-power energy infrastructure company that provides energy and development services to end-users worldwide. The company operates in two segments, Terminals and Infrastructure, and Ships. The Terminals and Infrastructure segment engages in the natural gas procurement and liquefaction; and shipping, logistics, facilities and conversion, or development of natural gas-fired power generation. The Ships segment offers floating storage and regasification units (FRSU) and liquefied natural gas (LNG) carriers which are leased to customers under long-term or spot arrangements. The company operates LNG storage and regasification facility at the Port of Montego Bay, Jamaica; marine LNG storage and regasification facility in Old Harbour, Jamaica; Dual-fired combined heat and power facility in Clarendon, Jamaica; landed micro-fuel handling facility in San Juan, Puerto Rico; and LNG receiving facility and gas-fired power plant in Baja Califrnia Sur, Mexico, as well as a Miami facility. New Fortress Energy Inc. was founded in 1998 and is based in New York, New York.