WallStSmart

Canadian Natural Resources Ltd (CNQ)vsTalos Energy (TALO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian Natural Resources Ltd generates 2157% more annual revenue ($44.68B vs $1.98B). CNQ leads profitability with a 26.3% profit margin vs -20.5%. CNQ earns a higher WallStSmart Score of 79/100 (B+).

CNQ

Strong Buy

79

out of 100

Grade: B+

Growth: 7.3Profit: 9.0Value: 6.7Quality: 7.0
Piotroski: 6/9Altman Z: 2.05

TALO

Buy

53

out of 100

Grade: C-

Growth: 5.3Profit: 4.5Value: 6.7Quality: 5.0
Piotroski: 4/9Altman Z: 0.25
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CNQUndervalued (+47.9%)

Margin of Safety

+47.9%

Fair Value

$96.11

Current Price

$50.07

$46.04 discount

UndervaluedFair: $96.11Overvalued
TALOUndervalued (+35.3%)

Margin of Safety

+35.3%

Fair Value

$20.69

Current Price

$17.68

$3.01 discount

UndervaluedFair: $20.69Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CNQ6 strengths · Avg: 9.5/10
Operating MarginProfitability
43.1%10/10

Strong operational efficiency at 43.1%

Revenue GrowthGrowth
69.5%10/10

Revenue surging 69.5% year-over-year

EPS GrowthGrowth
83.8%10/10

Earnings expanding 83.8% YoY

Market CapQuality
$103.22B9/10

Large-cap with strong market position

Return on EquityProfitability
25.1%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
26.3%9/10

Keeps 26 of every $100 in revenue as profit

TALO3 strengths · Avg: 10.0/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Operating MarginProfitability
34.4%10/10

Strong operational efficiency at 34.4%

Revenue GrowthGrowth
56.6%10/10

Revenue surging 56.6% year-over-year

Areas to Watch

CNQ1 concerns · Avg: 2.0/10
PEG RatioValuation
3.422/10

Expensive relative to growth rate

TALO4 concerns · Avg: 1.8/10
Return on EquityProfitability
-39.6%2/10

ROE of -39.6% — below average capital efficiency

EPS GrowthGrowth
-38.1%2/10

Earnings declined 38.1%

Altman Z-ScoreHealth
0.252/10

Distress zone — elevated risk

Profit MarginProfitability
-20.5%1/10

Currently unprofitable

Comparative Analysis Report

WallStSmart Research

Bull Case : CNQ

The strongest argument for CNQ centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 26.3% and operating margin at 43.1%. Revenue growth of 69.5% demonstrates continued momentum.

Bull Case : TALO

The strongest argument for TALO centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 56.6% demonstrates continued momentum.

Bear Case : CNQ

The primary concerns for CNQ are PEG Ratio.

Bear Case : TALO

The primary concerns for TALO are Return on Equity, EPS Growth, Altman Z-Score.

Key Dynamics to Monitor

CNQ profiles as a growth stock while TALO is a hypergrowth play — different risk/reward profiles.

CNQ carries more volatility with a beta of 0.88 — expect wider price swings.

CNQ is growing revenue faster at 69.5% — sustainability is the question.

CNQ generates stronger free cash flow (4.4B), providing more financial flexibility.

Bottom Line

CNQ scores higher overall (79/100 vs 53/100), backed by strong 26.3% margins and 69.5% revenue growth. TALO offers better value entry with a 35.3% margin of safety. 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.

Talos Energy

ENERGY · OIL & GAS E&P · USA

Talos Energy Inc., an independent exploration and production company, focuses on the exploration and production of oil and natural gas properties in the United States Gulf of Mexico and off the coast of Mexico. The company is headquartered in Houston, Texas.

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