Q: How do these two oil companies compare? Do you have a preference for a 10 year time horizon?
5i Research Answer:
The two companies have slightly different focues while both being energy companies. CNQ is a traditional oil & gas company while OXY focues on shale oil and has a growing carbon capture business. CNQ is larger at almost $104B in market cap while OXY has a market cap of U$48.27. CNQ is cheaper at 14x forward earnings vs OXY at 17x. CNQ has also historically generated better returns for shareholders. Due to size, valuation, and momentum we would prefer CNQ.