EPL Oil & Gas (NYSE: EPL) and Parsley Energy (NYSE:PE) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Valuation and Earnings

This table compares EPL Oil & Gas and Parsley Energy’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EPL Oil & Gas N/A N/A N/A $1.77 N/A
Parsley Energy $457.77 million 17.40 -$74.18 million $0.08 316.79

EPL Oil & Gas has higher earnings, but lower revenue than Parsley Energy. EPL Oil & Gas is trading at a lower price-to-earnings ratio than Parsley Energy, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

80.2% of Parsley Energy shares are held by institutional investors. 15.5% of Parsley Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares EPL Oil & Gas and Parsley Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EPL Oil & Gas N/A N/A N/A
Parsley Energy 3.22% 1.87% 1.31%

Analyst Recommendations

This is a breakdown of recent recommendations for EPL Oil & Gas and Parsley Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EPL Oil & Gas 0 0 0 0 N/A
Parsley Energy 0 0 22 0 3.00

Parsley Energy has a consensus target price of $40.05, suggesting a potential upside of 58.04%.

Summary

Parsley Energy beats EPL Oil & Gas on 7 of the 8 factors compared between the two stocks.

EPL Oil & Gas Company Profile

EPL Oil & Gas, Inc., formerly Energy Partners, Ltd., is an independent oil and natural gas exploration and production company based in New Orleans, Louisiana and Houston, Texas. The Company’s operations are concentrated in the United States, Gulf of Mexico shelf focusing on state and federal waters offshore Louisiana, which it considers its core area. On February 14, 2011, the Company acquired an asset package consisting of certain shallow-water Gulf of Mexico shelf oil and natural gas interests surrounding the Mississippi River delta and a related gathering system (the ASOP Properties) from Anglo-Suisse Offshore Partners, LLC (ASOP). In April 2013, it sold certain non-operated assets. In June 2014, Energy XXI (Bermuda) Limited completed the acquisition of EPL Oil & Gas Inc.

Parsley Energy Company Profile

Parsley Energy, Inc. is a holding company. The Company is an independent oil and natural gas company. The Company focuses on the acquisition, development and exploitation of unconventional oil and natural gas reserves in the Permian Basin. The Permian Basin is located in West Texas and Southeastern New Mexico and includes three primary sub-areas: the Midland Basin, the Central Basin Platform and the Delaware Basin. The Company’s properties are primarily located in the Midland and Delaware Basins, where it focuses on horizontal development drilling and target various stacked pay intervals in the Spraberry, Wolfcamp, Upper Pennsylvanian (Cline) and Atoka shales. As of December 31, 2016, it had an average working interest of 87% in 166 gross (146.7 net) horizontal wells, of which 151 gross (132.4 net) are in the Midland Basin. As of December 31, 2016, the Company operated seven horizontal rigs and three vertical drilling rigs.

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