Comprehensive Stock Comparison
Compare Canadian Natural Resources Limited (CNQ) vs Obsidian Energy Ltd. (OBE) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | OBE | 28.2% revenue growth vs CNQ's -12.7% |
| Value | CNQ | Lower P/E (15.3x vs 35.0x) |
| Quality / Margins | CNQ | 15.5% net margin vs OBE's -33.7% |
| Stability / Safety | CNQ | Beta 0.79 vs OBE's 1.39 |
| Dividends | CNQ | 3.5% yield; 1-year raise streak; OBE pays no meaningful dividend |
| Momentum (1Y) | CNQ | +60.8% vs OBE's +43.5% |
| Efficiency (ROA) | CNQ | 7.8% ROA vs OBE's -13.2%, ROIC 23.0% vs -10.3% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Canadian Natural Resources is a major integrated oil and gas producer with operations across Western Canada, the North Sea, and Offshore Africa. It generates revenue primarily from crude oil production—including synthetic crude oil, light/medium crude, and bitumen—with natural gas and natural gas liquids as secondary streams. The company's competitive advantage lies in its massive, long-life reserves—particularly its oil sands assets—which provide decades of low-decline production and operational scale.
Obsidian Energy is an oil and natural gas exploration and production company operating primarily in the Western Canada Sedimentary Basin. It generates revenue through the sale of crude oil (roughly 70% of production) and natural gas liquids, with natural gas making up the remainder. The company's competitive advantage lies in its extensive, low-decline asset base in established Canadian basins — which provides operational efficiency and predictable production.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
CNQ leads in 5 of 6 categories (Financial Metrics, Profitability & Efficiency). OBE leads in 1 (Valuation Metrics).
Financial Metrics (TTM)
CNQ is the larger business by revenue, generating $43.0B annually — 61.0x OBE's $705M. CNQ is the more profitable business, keeping 15.5% of every revenue dollar as net income compared to OBE's -33.7%. On growth, CNQ holds the edge at -8.5% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | CNQCanadian Natural … | OBEObsidian Energy L… |
|---|---|---|
| RevenueTrailing 12 months | $43.0B | $705M |
| EBITDAEarnings before interest/tax | $21.2B | $311M |
| Net IncomeAfter-tax profit | $6.7B | -$237M |
| Free Cash FlowCash after capex | $8.1B | -$5M |
| Gross MarginGross profit ÷ Revenue | +31.0% | -1.8% |
| Operating MarginEBIT ÷ Revenue | +28.7% | -44.3% |
| Net MarginNet income ÷ Revenue | +15.5% | -33.7% |
| FCF MarginFCF ÷ Revenue | +18.9% | -0.6% |
| Rev. Growth (YoY)Latest quarter vs prior year | -8.5% | -32.4% |
| EPS Growth (YoY)Latest quarter vs prior year | -72.6% | -42.9% |
Valuation Metrics
On an enterprise value basis, OBE's 2.6x EV/EBITDA is more attractive than CNQ's 6.2x.
| Metric | CNQCanadian Natural … | OBEObsidian Energy L… |
|---|---|---|
| Market CapShares × price | $91.2B | $527M |
| Enterprise ValueMkt cap + debt − cash | $105.9B | $777M |
| Trailing P/EPrice ÷ TTM EPS | 21.02x | -4.02x |
| Forward P/EPrice ÷ next-FY EPS est. | 15.33x | 35.04x |
| PEG RatioP/E ÷ EPS growth rate | 4.51x | — |
| EV / EBITDAEnterprise value multiple | 6.21x | 2.58x |
| Price / SalesMarket cap ÷ Revenue | 3.50x | 0.86x |
| Price / BookPrice ÷ Book value/share | 3.25x | 0.58x |
| Price / FCFMarket cap ÷ FCF | 15.41x | — |
Profitability & Efficiency
CNQ delivers a 16.4% return on equity — every $100 of shareholder capital generates $16 in annual profit, vs $-17 for OBE. OBE carries lower financial leverage with a 0.24x debt-to-equity ratio, signaling a more conservative balance sheet compared to CNQ's 0.51x.
| Metric | CNQCanadian Natural … | OBEObsidian Energy L… |
|---|---|---|
| ROE (TTM)Return on equity | +16.4% | -16.9% |
| ROA (TTM)Return on assets | +7.8% | -13.2% |
| ROICReturn on invested capital | +23.0% | -10.3% |
| ROCEReturn on capital employed | +23.3% | -12.9% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 5 |
| Debt / EquityFinancial leverage | 0.51x | 0.24x |
| Net DebtTotal debt minus cash | $20.2B | $343M |
| Cash & Equiv.Liquid assets | $131M | — |
| Total DebtShort + long-term debt | $20.3B | $343M |
| Interest CoverageEBIT ÷ Interest expense | 10.83x | -13.27x |
Total Returns (with DRIP)
A $10,000 investment in OBE five years ago would be worth $57,721 today (with dividends reinvested), compared to $35,679 for CNQ. Over the past 12 months, CNQ leads with a +60.8% total return vs OBE's +43.5%. The 3-year compound annual growth rate (CAGR) favors CNQ at 19.6% vs OBE's 3.5% — a key indicator of consistent wealth creation.
| Metric | CNQCanadian Natural … | OBEObsidian Energy L… |
|---|---|---|
| YTD ReturnYear-to-date | +27.5% | +24.8% |
| 1-Year ReturnPast 12 months | +60.8% | +43.5% |
| 3-Year ReturnCumulative with dividends | +71.2% | +10.9% |
| 5-Year ReturnCumulative with dividends | +256.8% | +477.2% |
| 10-Year ReturnCumulative with dividends | +420.6% | +20.4% |
| CAGR (3Y)Annualised 3-year return | +19.6% | +3.5% |
Risk & Volatility
CNQ is the less volatile stock with a 0.79 beta — it tends to amplify market swings less than OBE's 1.39 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | CNQCanadian Natural … | OBEObsidian Energy L… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.79x | 1.39x |
| 52-Week HighHighest price in past year | $44.02 | $8.10 |
| 52-Week LowLowest price in past year | $24.65 | $3.88 |
| % of 52W HighCurrent price vs 52-week peak | +99.4% | +96.9% |
| RSI (14)Momentum oscillator 0–100 | 76.4 | 55.9 |
| Avg Volume (50D)Average daily shares traded | 7.8M | 436K |
Analyst Outlook
Wall Street rates CNQ as "Buy" and OBE as "Hold". CNQ is the only dividend payer here at 3.45% yield — a key consideration for income-focused portfolios.
| Metric | CNQCanadian Natural … | OBEObsidian Energy L… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $35.00 | — |
| # AnalystsCovering analysts | 37 | 1 |
| Dividend YieldAnnual dividend ÷ price | +3.5% | — |
| Dividend StreakConsecutive years of raises | 1 | 0 |
| Dividend / ShareAnnual DPS | $2.07 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +2.1% | +5.8% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| Canadian Natural Re… (CNQ) | 100 | 282.95 | +182.9% |
| Obsidian Energy Ltd. (OBE) | 100 | 1,253.57 | +1153.6% |
Obsidian Energy Ltd. (OBE) returned +477% over 5 years vs Canadian Natural Re… (CNQ)'s +257%. A $10,000 investment in OBE 5 years ago would be worth $57,721 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Canadian Natural Re… (CNQ) | $13.2B | $35.7B | +170.8% |
| Obsidian Energy Ltd. (OBE) | $1.2B | $838M | -29.4% |
Canadian Natural Resources Limited's revenue grew from $13.2B (2015) to $35.7B (2024) — a 11.7% CAGR. Obsidian Energy Ltd.'s revenue grew from $1.2B (2015) to $838M (2024) — a -3.8% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Canadian Natural Re… (CNQ) | -4.8% | 17.1% | +454.0% |
| Obsidian Energy Ltd. (OBE) | -2.2% | -24.2% | -985.0% |
Canadian Natural Resources Limited's net margin went from -5% (2015) to 17% (2024). Obsidian Energy Ltd.'s net margin went from -2% (2015) to -24% (2024).
Chart 4P/E Ratio History — 7 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| Canadian Natural Re… (CNQ) | 17.5 | 10.8 | -38.3% |
| Obsidian Energy Ltd. (OBE) | 0.8 | 5.3 | +562.5% |
Canadian Natural Resources Limited has traded in a 6x–18x P/E range over 7 years; current trailing P/E is ~21x. Obsidian Energy Ltd. has traded in a 1x–5x P/E range over 3 years; current trailing P/E is ~-4x.
Chart 5EPS Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Canadian Natural Re… (CNQ) | -0.29 | 2.85 | +1082.8% |
| Obsidian Energy Ltd. (OBE) | -36.9 | -2.67 | +92.8% |
Canadian Natural Resources Limited's EPS grew from $-0.29 (2015) to $2.85 (2024). Obsidian Energy Ltd.'s EPS grew from $-36.90 (2015) to $-2.67 (2024).
Chart 6Free Cash Flow — 5 Years
Canadian Natural Resources Limited generated $8B FCF in 2024 (+3% vs 2021). Obsidian Energy Ltd. generated $-65M FCF in 2024 (-212% vs 2021).
CNQ vs OBE: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is CNQ or OBE a better buy right now?
Canadian Natural Resources Limited (CNQ) offers the better valuation at 21.0x trailing P/E (15.3x forward), making it the more compelling value choice. Analysts rate Canadian Natural Resources Limited (CNQ) a "Buy" — based on 37 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — CNQ or OBE?
On forward P/E, Canadian Natural Resources Limited is actually cheaper at 15.3x.
03Which is the better long-term investment — CNQ or OBE?
Over the past 5 years, Obsidian Energy Ltd. (OBE) delivered a total return of +477.2%, compared to +256.8% for Canadian Natural Resources Limited (CNQ). A $10,000 investment in OBE five years ago would be worth approximately $58K today (assuming dividends reinvested). Over 10 years, the gap is even starker: CNQ returned +420.6% versus OBE's +20.4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — CNQ or OBE?
By beta (market sensitivity over 5 years), Canadian Natural Resources Limited (CNQ) is the lower-risk stock at 0.79β versus Obsidian Energy Ltd.'s 1.39β — meaning OBE is approximately 75% more volatile than CNQ relative to the S&P 500. On balance sheet safety, Obsidian Energy Ltd. (OBE) carries a lower debt/equity ratio of 24% versus 51% for Canadian Natural Resources Limited — giving it more financial flexibility in a downturn.
05Which has better profit margins — CNQ or OBE?
Canadian Natural Resources Limited (CNQ) is the more profitable company, earning 17.1% net margin versus -24.2% for Obsidian Energy Ltd. — meaning it keeps 17.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CNQ leads at 47.1% versus -29.8% for OBE. At the gross margin level — before operating expenses — CNQ leads at 49.3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is CNQ or OBE more undervalued right now?
On forward earnings alone, Canadian Natural Resources Limited (CNQ) trades at 15.3x forward P/E versus 35.0x for Obsidian Energy Ltd. — 19.7x cheaper on a one-year earnings basis.
07Which pays a better dividend — CNQ or OBE?
In this comparison, CNQ (3.5% yield) pays a dividend. OBE does not pay a meaningful dividend and should not be held primarily for income.
08Is CNQ or OBE better for a retirement portfolio?
For long-horizon retirement investors, Canadian Natural Resources Limited (CNQ) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.79), 3.5% yield, +420.6% 10Y return). Both have compounded well over 10 years (CNQ: +420.6%, OBE: +20.4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between CNQ and OBE?
Both stocks operate in the Energy sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: CNQ is a mid-cap income-oriented stock; OBE is a small-cap quality compounder stock. CNQ pays a dividend while OBE does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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