Enerplus (ERF) & Wildhorse Resource Development (WRD) Critical Contrast
Enerplus (NYSE: ERF) and Wildhorse Resource Development (NYSE:WRD) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
This table compares Enerplus and Wildhorse Resource Development’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wildhorse Resource Development||8.88%||1.24%||0.68%|
This is a breakdown of recent recommendations and price targets for Enerplus and Wildhorse Resource Development, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wildhorse Resource Development||0||1||11||1||3.00|
Enerplus currently has a consensus target price of $15.00, indicating a potential upside of 66.85%. Wildhorse Resource Development has a consensus target price of $20.82, indicating a potential upside of 16.43%. Given Enerplus’ higher probable upside, research analysts plainly believe Enerplus is more favorable than Wildhorse Resource Development.
Insider and Institutional Ownership
49.7% of Enerplus shares are owned by institutional investors. Comparatively, 95.7% of Wildhorse Resource Development shares are owned by institutional investors. 2.6% of Wildhorse Resource Development shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Enerplus and Wildhorse Resource Development’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Enerplus||$545.68 million||3.99||$300.12 million||$3.25||2.77|
|Wildhorse Resource Development||$127.34 million||14.21||-$47.07 million||$0.22||81.28|
Enerplus has higher revenue and earnings than Wildhorse Resource Development. Enerplus is trading at a lower price-to-earnings ratio than Wildhorse Resource Development, indicating that it is currently the more affordable of the two stocks.
Enerplus pays an annual dividend of $0.09 per share and has a dividend yield of 1.0%. Wildhorse Resource Development does not pay a dividend. Enerplus pays out 2.8% of its earnings in the form of a dividend.
Enerplus beats Wildhorse Resource Development on 8 of the 15 factors compared between the two stocks.
Enerplus Corporation is an oil and natural gas company. The Company’s oil and natural gas property interests are located in the United States, primarily in North Dakota, Montana, and Pennsylvania, as well as in western Canada in the provinces of Alberta, British Columbia and Saskatchewan. The Company’s oil and natural gas property interests contains proved plus probable gross reserves of approximately 14.3 million barrels (MMbbls) of light and medium crude oil, 39.0 MMbbls of heavy crude oil, 123 MMbbls of tight oil, 18.1 MMbbls of natural gas liquids (NGLs), 126.3 billion cubic feet (Bcf) of conventional natural gas and 1,002.8 Bcf of shale gas, for a total of approximately 382.5 million barrels of oil equivalent (MMBOE). The Company’s primary crude oil properties in the United States are located in the Fort Berthold region of North Dakota and in Richland County, Montana.
About Wildhorse Resource Development
WildHorse Resource Development Corporation is a holding company. The Company is an independent oil and natural gas company. The Company is focused on the acquisition, exploitation, exploration and development of oil, natural gas and natural gas liquid (NGL) resources in the United States. Its assets are characterized by concentrated acreage positions in Southeast Texas and North Louisiana with multiple producing stratigraphic horizons, or stacked pay zones, and single-well rates of return. In Southeast Texas, it operates in Burleson, Lee and Washington Counties where it primarily targets the Eagle Ford Shale (Eagle Ford Acreage), which is an active shale trends in North America. In North Louisiana, the Company operates in and around the Terryville Complex, where it primarily targets the overpressured Cotton Valley play (North Louisiana Acreage). The Company’s subsidiaries include WildHorse Resources II, LLC (WildHorse) and Esquisto and Acquisition Co.
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