WallStSmart

Canadian Natural Resources Ltd (CNQ)vsRange Resources Corp (RRC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian Natural Resources Ltd generates 1104% more annual revenue ($38.63B vs $3.21B). RRC leads profitability with a 28.1% profit margin vs 25.1%. RRC appears more attractively valued with a PEG of 1.19. RRC earns a higher WallStSmart Score of 85/100 (A).

CNQ

Buy

58

out of 100

Grade: C

Growth: 2.0Profit: 8.5Value: 7.3Quality: 6.5
Piotroski: 6/9Altman Z: 2.05

RRC

Exceptional Buy

85

out of 100

Grade: A

Growth: 6.7Profit: 9.0Value: 8.7Quality: 6.0
Piotroski: 6/9Altman Z: 1.45
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CNQUndervalued (+45.4%)

Margin of Safety

+45.4%

Fair Value

$83.74

Current Price

$45.70

$38.04 discount

UndervaluedFair: $83.74Overvalued
RRCUndervalued (+43.5%)

Margin of Safety

+43.5%

Fair Value

$64.43

Current Price

$39.10

$25.33 discount

UndervaluedFair: $64.43Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CNQ6 strengths · Avg: 9.0/10
P/E RatioValuation
11.8x10/10

Attractively priced relative to earnings

Return on EquityProfitability
30.3%10/10

Every $100 of equity generates 30 in profit

Market CapQuality
$98.47B9/10

Large-cap with strong market position

Profit MarginProfitability
25.1%9/10

Keeps 25 of every $100 in revenue as profit

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
21.8%8/10

Strong operational efficiency at 21.8%

RRC6 strengths · Avg: 9.3/10
P/E RatioValuation
10.3x10/10

Attractively priced relative to earnings

Operating MarginProfitability
44.3%10/10

Strong operational efficiency at 44.3%

EPS GrowthGrowth
260.7%10/10

Earnings expanding 260.7% YoY

Profit MarginProfitability
28.1%9/10

Keeps 28 of every $100 in revenue as profit

Debt/EquityHealth
0.219/10

Conservative balance sheet, low leverage

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Areas to Watch

CNQ3 concerns · Avg: 2.0/10
PEG RatioValuation
3.422/10

Expensive relative to growth rate

Revenue GrowthGrowth
-1.2%2/10

Revenue declined 1.2%

EPS GrowthGrowth
-45.3%2/10

Earnings declined 45.3%

RRC1 concerns · Avg: 2.0/10
Altman Z-ScoreHealth
1.452/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : CNQ

The strongest argument for CNQ centers on P/E Ratio, Return on Equity, Market Cap. Profitability is solid with margins at 25.1% and operating margin at 21.8%.

Bull Case : RRC

The strongest argument for RRC centers on P/E Ratio, Operating Margin, EPS Growth. Profitability is solid with margins at 28.1% and operating margin at 44.3%. Revenue growth of 26.1% demonstrates continued momentum.

Bear Case : CNQ

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

Bear Case : RRC

The primary concerns for RRC are Altman Z-Score.

Key Dynamics to Monitor

CNQ profiles as a declining stock while RRC is a growth play — different risk/reward profiles.

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

RRC is growing revenue faster at 26.1% — sustainability is the question.

CNQ generates stronger free cash flow (856M), providing more financial flexibility.

Bottom Line

RRC scores higher overall (85/100 vs 58/100), backed by strong 28.1% margins and 26.1% revenue growth. CNQ offers better value entry with a 45.4% margin of safety. Both earn "Exceptional 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.

Range Resources Corp

ENERGY · OIL & GAS E&P · USA

Range Resources Corporation is an independent natural gas, natural gas liquids (NGL) and petroleum company in the United States. The company is headquartered in Fort Worth, Texas.

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