Bonanza Creek Energy (NYSE:BCEI) and Marathon Oil (NYSE:MRO) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.
This table compares Bonanza Creek Energy and Marathon Oil’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bonanza Creek Energy||21.61%||13.67%||10.95%|
Earnings & Valuation
This table compares Bonanza Creek Energy and Marathon Oil’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bonanza Creek Energy||$192.12 million||2.73||-$2.36 million||N/A||N/A|
|Marathon Oil||$4.77 billion||2.80||-$5.72 billion||($0.38)||-42.24|
Bonanza Creek Energy has higher earnings, but lower revenue than Marathon Oil.
Insider & Institutional Ownership
81.2% of Marathon Oil shares are held by institutional investors. 0.9% of Bonanza Creek Energy shares are held by company insiders. Comparatively, 0.4% of Marathon Oil shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
Bonanza Creek Energy has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Marathon Oil has a beta of 2.42, meaning that its stock price is 142% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Bonanza Creek Energy and Marathon Oil, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bonanza Creek Energy||0||1||2||0||2.67|
Bonanza Creek Energy currently has a consensus price target of $43.33, suggesting a potential upside of 69.73%. Marathon Oil has a consensus price target of $23.77, suggesting a potential upside of 48.11%. Given Bonanza Creek Energy’s higher possible upside, equities research analysts plainly believe Bonanza Creek Energy is more favorable than Marathon Oil.
Marathon Oil pays an annual dividend of $0.20 per share and has a dividend yield of 1.2%. Bonanza Creek Energy does not pay a dividend. Marathon Oil pays out -52.6% of its earnings in the form of a dividend.
Marathon Oil beats Bonanza Creek Energy on 8 of the 15 factors compared between the two stocks.
About Bonanza Creek Energy
Bonanza Creek Energy, Inc. engages in the exploration, development, and production of onshore oil and related liquids-rich natural gas in the United States. The company's oil and liquids-weighted assets are located primarily in the Wattenberg Field in Colorado; and the Dorcheat Macedonia Field in southern Arkansas. It also owns and operates oil-producing assets in the McKamie Patton Field in southern Arkansas. As of December 31, 2017, the company had proved reserves of 102.0 MMBoe. Bonanza Creek Energy, Inc. was founded in 2010 and is headquartered in Denver, Colorado.
About Marathon Oil
Marathon Oil Corporation operates as an energy company in the United States, Equatorial Guinea, the United Kingdom, and Libya. It operates in two segments, United States E&P and International E&P. The company engages in the exploration, production, and marketing of crude oil and condensate, natural gas liquids, and natural gas; and the production and marketing of products manufactured from natural gas, such as liquefied natural gas and methanol. As of December 31, 2017, it had estimated proved developed reserves totaling 903 million barrels of oil equivalent (mmboe); and estimated proved undeveloped reserves totaling 546 mmboe. The company was formerly known as USX Corporation and changed its name to Marathon Oil Corporation in July 2001. Marathon Oil Corporation was founded in 1887 and is headquartered in Houston, Texas.
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