Chaparral Energy Inc Class A (OTCMKTS:CHPE) and Sanchez Energy (NYSE:SN) are both small-cap oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
Earnings & Valuation
This table compares Chaparral Energy Inc Class A and Sanchez Energy’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Chaparral Energy Inc Class A||$293.61 million||3.05||$923.05 million||N/A||N/A|
|Sanchez Energy||$740.33 million||0.30||$43.19 million||($0.32)||-7.81|
Chaparral Energy Inc Class A has higher earnings, but lower revenue than Sanchez Energy.
Institutional and Insider Ownership
48.0% of Sanchez Energy shares are owned by institutional investors. 11.1% of Sanchez Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of current ratings for Chaparral Energy Inc Class A and Sanchez Energy, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Chaparral Energy Inc Class A||0||0||4||0||3.00|
Chaparral Energy Inc Class A presently has a consensus target price of $29.88, suggesting a potential upside of 55.19%. Sanchez Energy has a consensus target price of $3.86, suggesting a potential upside of 54.29%. Given Chaparral Energy Inc Class A’s stronger consensus rating and higher possible upside, analysts clearly believe Chaparral Energy Inc Class A is more favorable than Sanchez Energy.
This table compares Chaparral Energy Inc Class A and Sanchez Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Chaparral Energy Inc Class A||-39.75%||-10.93%||-7.51%|
Sanchez Energy beats Chaparral Energy Inc Class A on 6 of the 11 factors compared between the two stocks.
About Chaparral Energy Inc Class A
Chaparral Energy, Inc. engages in the acquisition, exploration, development, production, and operation of onshore oil and natural gas properties primarily in Oklahoma, the United States. The company sells crude oil, natural gas, and natural gas liquids primarily to refineries and gas processing plant. As of March 29, 2018, it had estimated potential reserves of one billion barrels of oil equivalent. The company was founded in 1988 and is headquartered in Oklahoma City, Oklahoma.
About Sanchez Energy
Sanchez Energy Corporation, an independent exploration and production company, focuses on the acquisition and development of U.S. onshore unconventional oil and natural gas resources. It engages in the horizontal development of resources from the Eagle Ford Shale in South Texas. It also holds an undeveloped acreage position in the Tuscaloosa Marine Shale (TMS) in Mississippi and Louisiana. As of December 31, 2017, the company had assembled approximately 285,000 net acres in the Eagle Ford Shale; and owned approximately 37,000 net acres in the TMS. Sanchez Energy Corporation was founded in 2011 and is headquartered in Houston, Texas.
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