Chesapeake Energy Corporation (CHK), General Electric Company (GE): Natural Gas Is Overrated

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Even with Siemens’ recent wind growth, the company cannot completely escape from Europe’s and Germany’s challenges. Its ROI of 9.7% is higher than GE’s, but its profit margin of 5.7% and earnings before interest and taxes (EBIT) margin of 10.8% are significantly lower than GE’s. Until Europe’s debt struggles are worked out, General Electric Company (NYSE:GE) has a safer future than Siemens.

Conclusion

Wind power is not a novelty anymore. The U.S. continues to add more wind capacity as low natural gas prices hurt drillers. General Electric Company (NYSE:GE) offers a great way to play the wind energy, as its turbines complement its other energy solutions. Siemens is another good wind play to watch, but Europe’s dark clouds continue to shroud the company. Chesapeake Energy Corporation (NYSE:CHK) may be a good investment one day, but at its current debt level and valuation, it is expensive.

Joshua Bondy has no position in any stocks mentioned. The Motley Fool owns shares of General Electric Company and has the following options: long January 2014 $30 calls on Chesapeake Energy.

The article Natural Gas Is Overrated originally appeared on Fool.com.

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