WallStSmart

Canadian Natural Resources Ltd (CNQ)vsConocoPhillips (COP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

ConocoPhillips generates 53% more annual revenue ($59.38B vs $38.76B). CNQ leads profitability with a 27.9% profit margin vs 12.3%. COP appears more attractively valued with a PEG of 1.22. CNQ earns a higher WallStSmart Score of 67/100 (B-).

CNQ

Strong Buy

67

out of 100

Grade: B-

Growth: 5.3Profit: 8.5Value: 6.7Quality: 5.0

COP

Buy

56

out of 100

Grade: C

Growth: 2.0Profit: 6.5Value: 4.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CNQUndervalued (+55.3%)

Margin of Safety

+55.3%

Fair Value

$90.94

Current Price

$47.58

$43.36 discount

UndervaluedFair: $90.94Overvalued
COPSignificantly Overvalued (-50.9%)

Margin of Safety

-50.9%

Fair Value

$73.68

Current Price

$124.91

$51.23 premium

UndervaluedFair: $73.68Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CNQ6 strengths · Avg: 8.8/10
EPS GrowthGrowth
371.8%10/10

Earnings expanding 371.8% YoY

Market CapQuality
$99.29B9/10

Large-cap with strong market position

Return on EquityProfitability
25.8%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
27.9%9/10

Keeps 28 of every $100 in revenue as profit

P/E RatioValuation
12.5x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$2.31B8/10

Generating 2.3B in free cash flow

COP4 strengths · Avg: 8.3/10
Market CapQuality
$152.18B9/10

Large-cap with strong market position

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.1%8/10

Strong operational efficiency at 22.1%

Free Cash FlowQuality
$1.35B8/10

Generating 1.3B in free cash flow

Areas to Watch

CNQ2 concerns · Avg: 3.0/10
Revenue GrowthGrowth
1.5%4/10

1.5% revenue growth

PEG RatioValuation
3.422/10

Expensive relative to growth rate

COP2 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-5.3%2/10

Revenue declined 5.3%

EPS GrowthGrowth
-20.2%2/10

Earnings declined 20.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : CNQ

The strongest argument for CNQ centers on EPS Growth, Market Cap, Return on Equity. Profitability is solid with margins at 27.9% and operating margin at 19.6%.

Bull Case : COP

The strongest argument for COP centers on Market Cap, Price/Book, Operating Margin. PEG of 1.22 suggests the stock is reasonably priced for its growth.

Bear Case : CNQ

The primary concerns for CNQ are Revenue Growth, PEG Ratio.

Bear Case : COP

The primary concerns for COP are Revenue Growth, EPS Growth.

Key Dynamics to Monitor

CNQ profiles as a value stock while COP is a declining play — different risk/reward profiles.

CNQ carries more volatility with a beta of 0.91 — expect wider price swings.

CNQ is growing revenue faster at 1.5% — sustainability is the question.

CNQ generates stronger free cash flow (2.3B), providing more financial flexibility.

Bottom Line

CNQ scores higher overall (67/100 vs 56/100), backed by strong 27.9% margins. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Canadian Natural Resources Ltd

ENERGY · OIL & GAS E&P · USA

Canadian Natural Resources Limited acquires, explores, develops, produces, markets and sells crude oil, natural gas and natural gas liquids (NGL). The company is headquartered in Calgary, Canada.

ConocoPhillips

ENERGY · OIL & GAS E&P · USA

ConocoPhillips is an American multinational corporation engaged in hydrocarbon exploration. It is based in the Energy Corridor district of Houston, Texas.

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