Abraxas Petroleum (NASDAQ:AXAS) & Ecopetrol (NASDAQ:EC) Head-To-Head Review

Ecopetrol (NYSE:EC) and Abraxas Petroleum (NASDAQ:AXAS) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Institutional and Insider Ownership

2.3% of Ecopetrol shares are owned by institutional investors. Comparatively, 36.8% of Abraxas Petroleum shares are owned by institutional investors. 5.7% of Abraxas Petroleum shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Ecopetrol and Abraxas Petroleum, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ecopetrol 0 1 4 0 2.80
Abraxas Petroleum 1 5 0 0 1.83

Ecopetrol currently has a consensus price target of $16.16, suggesting a potential upside of 53.61%. Abraxas Petroleum has a consensus price target of $1.00, suggesting a potential upside of 398.26%. Given Abraxas Petroleum’s higher probable upside, analysts clearly believe Abraxas Petroleum is more favorable than Ecopetrol.

Earnings and Valuation

This table compares Ecopetrol and Abraxas Petroleum’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ecopetrol $21.45 billion 1.01 $19.24 billion $2.01 5.23
Abraxas Petroleum $149.17 million 0.23 $57.82 million N/A N/A

Ecopetrol has higher revenue and earnings than Abraxas Petroleum.

Profitability

This table compares Ecopetrol and Abraxas Petroleum’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ecopetrol 17.10% 11.24% 4.89%
Abraxas Petroleum 43.17% 9.26% 3.45%

Volatility and Risk

Ecopetrol has a beta of 1.88, indicating that its stock price is 88% more volatile than the S&P 500. Comparatively, Abraxas Petroleum has a beta of 3.6, indicating that its stock price is 260% more volatile than the S&P 500.

Summary

Ecopetrol beats Abraxas Petroleum on 8 of the 13 factors compared between the two stocks.

About Ecopetrol

Ecopetrol S.A. operates as an integrated oil and gas company. The company operates through three segments: Exploration and Production; Transport and Logistics; and Refining, Petrochemical, and Biofuels. It produces crude oil and gas; and engages in the extraction, collection, treatment, storage, commercialization, and pumping. The company has 9,071 kilometers of transportation pipeline systems. It also transports and distributes hydrocarbons, derivatives, and products. In addition, the company produces and markets polypropylene resin, compounds, and masterbatches; and offers refined and petrochemical products, as well as industrial service sales to customers. Ecopetrol S.A. has strategic partnership with Occidental Petroleum Corporation. The company was formerly known as Empresa Colombiana de Petróleos and changed its name to Ecopetrol S.A. in June 2003. Ecopetrol S.A. was founded in 1948 and is based in Bogotá, Colombia.

About Abraxas Petroleum

Abraxas Petroleum Corporation, an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of oil and gas properties in the United States. The company operates oil and gas assets in the Permian/Delaware Basin, the Rocky Mountain, and South Texas regions. As of December 31, 2018, its estimated net proved reserves were 67.2 million barrels of oil equivalent. The company was founded in 1977 and is based in San Antonio, Texas.

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