WallStSmart

Canadian Natural Resources Ltd (CNQ)vsPermRock Royalty Trust (PRT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian Natural Resources Ltd generates 644944% more annual revenue ($38.76B vs $6.01M). PRT leads profitability with a 85.3% profit margin vs 27.9%. PRT trades at a lower P/E of 7.9x. CNQ earns a higher WallStSmart Score of 67/100 (B-).

CNQ

Strong Buy

67

out of 100

Grade: B-

Growth: 3.3Profit: 8.5Value: 7.3Quality: 5.0

PRT

Hold

44

out of 100

Grade: D

Growth: 2.0Profit: 7.5Value: 5.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CNQUndervalued (+76.9%)

Margin of Safety

+76.9%

Fair Value

$175.97

Current Price

$49.02

$126.95 discount

UndervaluedFair: $175.97Overvalued
PRTSignificantly Overvalued (-26.2%)

Margin of Safety

-26.2%

Fair Value

$2.86

Current Price

$3.30

$0.44 premium

UndervaluedFair: $2.86Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CNQ5 strengths · Avg: 8.6/10
Market CapQuality
$102.25B9/10

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
13.0x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$2.31B8/10

Generating 2.3B in free cash flow

PRT4 strengths · Avg: 10.0/10
P/E RatioValuation
7.9x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Profit MarginProfitability
85.3%10/10

Keeps 85 of every $100 in revenue as profit

Operating MarginProfitability
88.3%10/10

Strong operational efficiency at 88.3%

Areas to Watch

CNQ3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
1.5%4/10

1.5% revenue growth

EPS GrowthGrowth
3.7%4/10

3.7% earnings growth

PEG RatioValuation
3.422/10

Expensive relative to growth rate

PRT4 concerns · Avg: 2.5/10
Market CapQuality
$40.51M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.1%3/10

ROE of 7.1% — below average capital efficiency

Revenue GrowthGrowth
-19.5%2/10

Revenue declined 19.5%

EPS GrowthGrowth
-17.1%2/10

Earnings declined 17.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : CNQ

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

Bull Case : PRT

The strongest argument for PRT centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 85.3% and operating margin at 88.3%.

Bear Case : CNQ

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

Bear Case : PRT

The primary concerns for PRT are Market Cap, Return on Equity, Revenue Growth.

Key Dynamics to Monitor

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

CNQ carries more volatility with a beta of 1.06 — expect wider price swings.

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

Monitor OIL & GAS E&P industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CNQ scores higher overall (67/100 vs 44/100), backed by strong 27.9% margins. Both earn "Strong Buy" and "Hold" 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.

PermRock Royalty Trust

ENERGY · OIL & GAS E&P · USA

The PermRock Royalty Trust owns 80 net earnings interests in the oil and natural gas producing properties acquired by Boaz Energy II, LLC in Permian Basin, Texas. The company is headquartered in Fort Worth, Texas.

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