WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian Natural Resources Ltd generates 1197% more annual revenue ($38.76B vs $2.99B). CNQ leads profitability with a 27.9% profit margin vs 22.0%. CNQ appears more attractively valued with a PEG of 3.42. RRC earns a higher WallStSmart Score of 74/100 (B).

CNQ

Strong Buy

67

out of 100

Grade: B-

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

RRC

Strong Buy

74

out of 100

Grade: B

Growth: 6.7Profit: 8.5Value: 7.3Quality: 5.5
Piotroski: 5/9Altman Z: 1.15
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
RRCUndervalued (+71.6%)

Margin of Safety

+71.6%

Fair Value

$128.23

Current Price

$46.59

$81.64 discount

UndervaluedFair: $128.23Overvalued

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

RRC6 strengths · Avg: 8.8/10
Operating MarginProfitability
33.6%10/10

Strong operational efficiency at 33.6%

EPS GrowthGrowth
94.1%10/10

Earnings expanding 94.1% YoY

Profit MarginProfitability
22.0%9/10

Keeps 22 of every $100 in revenue as profit

P/E RatioValuation
16.8x8/10

Attractively priced relative to earnings

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
16.3%8/10

16.3% revenue growth

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

RRC2 concerns · Avg: 2.0/10
PEG RatioValuation
3.782/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.152/10

Distress zone — elevated risk

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 : RRC

The strongest argument for RRC centers on Operating Margin, EPS Growth, Profit Margin. Profitability is solid with margins at 22.0% and operating margin at 33.6%. Revenue growth of 16.3% demonstrates continued momentum.

Bear Case : CNQ

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

Bear Case : RRC

The primary concerns for RRC are PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

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

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

RRC is growing revenue faster at 16.3% — sustainability is the question.

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

Bottom Line

RRC scores higher overall (74/100 vs 67/100), backed by strong 22.0% margins and 16.3% revenue growth. CNQ offers better value entry with a 76.9% margin of safety. Both earn "Strong Buy" and "Strong 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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