Escalera Resources (NASDAQ: ESCR) and Bonanza Creek Energy (NYSE:BCEI) are both large-cap basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.

Earnings & Valuation

This table compares Escalera Resources and Bonanza Creek Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Escalera Resources N/A N/A N/A ($2.29) 0.00
Bonanza Creek Energy $195.29 million 3.60 -$198.95 million ($233.95) -0.15

Escalera Resources has higher revenue, but lower earnings than Bonanza Creek Energy. Bonanza Creek Energy is trading at a lower price-to-earnings ratio than Escalera Resources, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Escalera Resources has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, Bonanza Creek Energy has a beta of 2.07, meaning that its stock price is 107% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Escalera Resources and Bonanza Creek Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Escalera Resources 0 0 0 0 N/A
Bonanza Creek Energy 0 3 0 0 2.00

Bonanza Creek Energy has a consensus target price of $25.00, suggesting a potential downside of 27.45%. Given Bonanza Creek Energy’s higher probable upside, analysts plainly believe Bonanza Creek Energy is more favorable than Escalera Resources.

Profitability

This table compares Escalera Resources and Bonanza Creek Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Escalera Resources -44.69% N/A -10.12%
Bonanza Creek Energy -53.37% -24.22% -4.05%

Institutional & Insider Ownership

91.0% of Bonanza Creek Energy shares are owned by institutional investors. 0.6% of Bonanza Creek Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Bonanza Creek Energy beats Escalera Resources on 6 of the 9 factors compared between the two stocks.

About Escalera Resources

Escalera Resources Co. is an independent energy company. The Company is engaged in the exploration, development, production and sale of natural gas and crude oil, primarily in the Rocky Mountain Basins of the western United States. The Company’s production primarily consists of natural gas from properties located in Wyoming, of which are coalbed methane (CBM) reserves and production in the Atlantic Rim area of the eastern Washakie Basin, and tight gas reserves and production on the Pinedale Anticline in the Green River Basin. The Company’s Atlantic Rim production originates from two operating units: the Catalina Unit and the Spyglass Hill Unit (which includes the Sun Dog, Doty Mountain, and Grace Point participating areas (PA)). The Company operates the Catalina Unit and has a non-operated working interests in the Spyglass Hill Unit.

About Bonanza Creek Energy

Bonanza Creek Energy, Inc. (Bonanza Creek) is an independent energy company engaged in the acquisition, exploration, development and production of onshore oil and associated liquids-rich natural gas in the United States. The Company’s oil and liquids-weighted assets are concentrated primarily in the Wattenberg Field in Colorado and the Dorcheat Macedonia Field in southern Arkansas. In addition, the Company owns and operates oil-producing assets in the North Park Basin in Colorado and the McKamie Patton Field in southern Arkansas. The main areas in which the Company operates in the Rocky Mountain region are the Wattenberg Field in Weld County, Colorado and the North Park Basin in Jackson County, Colorado. Its Wattenberg Field operations are in the oil and liquids-weighted extension area of the Wattenberg Field targeting the Niobrara and Codell formations. In southern Arkansas, it targets the oil-rich Cotton Valley sands in the Dorcheat Macedonia and McKamie Patton Fields.

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