Best Stock to Buy Right Now: Canadian Natural Resources vs. Cenovus?

Getting into Canada’s biggest energy giants? Investors might want to compare Canadian Natural Resources (TSX: CNQ) and Cenovus (TSX: CVE) right now for a few reasons. Both sit at the centre of Canada’s energy strength, yet each offers a different path for returns. With oil staying volatile and cash flow still strong across the sector, choosing between the reliability of CNQ or the higher-octane upside of Cenovus becomes a timely decision — one for investors looking for the best energy pick today.

Into earnings

For CNQ, the dividend stock recently reported third-quarter (Q3) 2025 results where net earnings and earnings per share (EPS) beat expectations. Net earnings came in at $600 million, and EPS came in at $0.86. The dividend stock returned $1.5 billion to shareholders through $1.2 billion in dividends and $300 million in share repurchases.

Turning to Cenovus, it was a record quarter with 832,900 barrels of oil equivalent per day in the third quarter. The dividend stock reported net earnings of $1.3 billion in the third quarter at $0.72 per diluted share. Furthermore, it returned substantially to investors, with $1.3 billion to shareholders from $918 million in share repurchases and $356 million in dividends. Cenovus also completed a substantial acquisition: the purchase of MEG Energy for $30 per MEG share. So, there is certainly more to look forward to.

Comparing the two

Canadian Natural Resources looks like the steadier choice right now if you want reliability, income strength, and a proven track record of compounding. The clear benefit here is a focus on dividends. The dividend stock continues to generate healthy free cash flow even when oil prices soften, thanks to some of the lowest breakeven costs in the industry. Its recent earnings beat shows the business can still outperform expectations despite weaker commodity prices.

CNQ also keeps rewarding shareholders through regular dividend hikes, and management has a long history of being disciplined with capital allocation. When you buy CNQ, you’re buying a company that behaves like a cash-flow machine during most points in the cycle. That stability makes it easier to hold through volatility, especially if you’re using a TFSA to shelter long-term gains.

Cenovus, however, offers more upside potential if oil prices move higher. It just expanded its oil sands footprint with a major acquisition, which could boost long-term production and efficiency once integration is complete. It’s also still reducing debt and improving its balance sheet, so a cleaner financial base could unlock higher shareholder returns down the road. But CVE’s path is bumpier, and the dividend stock reacts more sharply to price swings and project risks.

Bottom line

If you’re comfortable with a bit more volatility and want the potential for faster upside, CVE may feel more exciting. If your goal is to pick the “best” stock right now based on consistency, stability, and long-term compounding, CNQ is the stronger overall buy. Either way, you still get dividends. In fact, here’s what investors can earn from $7,000 in each company.

These dividend darlings could be ideal investments. You can bring in stable income from CNQ as well as growth from CVE. And that provides a long-term runway for any great investor.