Head to Head Comparison: Denbury Resources (NYSE:DNR) & Berry Petroleum (NYSE:BRY)

Denbury Resources (NYSE:DNR) and Berry Petroleum (NASDAQ:BRY) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Profitability

This table compares Denbury Resources and Berry Petroleum’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Denbury Resources 27.05% 18.67% 4.47%
Berry Petroleum 24.87% 12.64% 7.39%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Denbury Resources and Berry Petroleum, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Denbury Resources 1 5 0 0 1.83
Berry Petroleum 0 1 4 0 2.80

Denbury Resources currently has a consensus target price of $3.60, indicating a potential upside of 221.43%. Berry Petroleum has a consensus target price of $13.00, indicating a potential upside of 17.65%. Given Denbury Resources’ higher possible upside, research analysts plainly believe Denbury Resources is more favorable than Berry Petroleum.

Dividends

Berry Petroleum pays an annual dividend of $0.48 per share and has a dividend yield of 4.3%. Denbury Resources does not pay a dividend. Berry Petroleum pays out 38.1% of its earnings in the form of a dividend.

Volatility & Risk

Denbury Resources has a beta of 3.38, meaning that its stock price is 238% more volatile than the S&P 500. Comparatively, Berry Petroleum has a beta of 2.47, meaning that its stock price is 147% more volatile than the S&P 500.

Valuation and Earnings

This table compares Denbury Resources and Berry Petroleum’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Denbury Resources $1.47 billion 0.36 $322.70 million $0.48 2.33
Berry Petroleum $586.56 million 1.53 $147.10 million $1.26 8.77

Denbury Resources has higher revenue and earnings than Berry Petroleum. Denbury Resources is trading at a lower price-to-earnings ratio than Berry Petroleum, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

74.1% of Denbury Resources shares are owned by institutional investors. Comparatively, 98.5% of Berry Petroleum shares are owned by institutional investors. 1.2% of Denbury Resources shares are owned by company insiders. Comparatively, 0.6% of Berry Petroleum shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Denbury Resources Company Profile

Denbury Resources Inc. operates as an independent oil and natural gas company in the United States. It holds interests in various oil and natural gas properties located in Mississippi, Texas, Louisiana, and Alabama in the Gulf Coast region; and in Montana, North Dakota, and Wyoming in the Rocky Mountain region. As of December 31, 2018, the company had 262 million barrels of oil equivalent of estimated proved oil and natural gas reserves, including 255 million barrels of crude oil, and condensate and natural gas liquids, as well as 43 billion cubic feet of natural gas. Denbury Resources Inc. was founded in 1951 and is headquartered in Plano, Texas.

Berry Petroleum Company Profile

Berry Petroleum Company, LLC., formerly Berry Petroleum Company, is an independent energy company. The Company is engaged in the production, development, exploitation, and acquisition of oil and natural gas. The Company’s principal reserves and producing properties are located in California (South Midway-Sunset (SMWSS)-Steam Floods, North Midway-Sunset (NMWSS)-Diatomite, NMWSS-New Steam Floods, Texas (Permian and E. Texas), Utah (Uinta) and Colorado (Piceance). The Company’s operations are conducted in the continental United States. In December 2013, Linn Energy LLC and Linn Co, LLC (Linn Co) announced the completion of the merger between LinnCo and Berry Petroleum Company (Berry), where LinnCo had acquired all of Berry’s interest.

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