Critical Analysis: Amplify Energy (NYSE:AMPY) vs. Carbon Energy (OTCMKTS:CRBO)

Carbon Energy (OTCMKTS:CRBO) and Amplify Energy (NYSE:AMPY) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Profitability

This table compares Carbon Energy and Amplify Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carbon Energy	N/A	N/A	N/A
Amplify Energy	-10.10%	-0.40%	-0.22%

Valuation and Earnings

This table compares Carbon Energy and Amplify Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carbon Energy	N/A	N/A	N/A	N/A	N/A
Amplify Energy	$275.83 million	0.71	$12.95 million	($0.71)	-6.83

Amplify Energy has higher revenue and earnings than Carbon Energy.

Volatility & Risk

Carbon Energy has a beta of -1.99, suggesting that its stock price is 299% less volatile than the S&P 500. Comparatively, Amplify Energy has a beta of -0.05, suggesting that its stock price is 105% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Carbon Energy and Amplify Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carbon Energy	0	0	0	0	0.00
Amplify Energy	1	0	2	0	2.33

Amplify Energy has a consensus target price of $7.25, indicating a potential upside of 49.48%. Given Amplify Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Amplify Energy is more favorable than Carbon Energy.

Institutional and Insider Ownership

42.8% of Amplify Energy shares are owned by institutional investors. 7.1% of Carbon Energy shares are owned by company insiders. Comparatively, 10.3% of Amplify Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Amplify Energy beats Carbon Energy on 7 of the 10 factors compared between the two stocks.

About Carbon Energy

Carbon Energy Corporation, an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids properties in the United States. It focuses on conventional and unconventional reservoirs, including shale, tight sand, and coalbed methane located in the Appalachian, Illinois, and Ventura Basins. It owns working interests and royalty interests in wells located in California, Illinois, Indiana, Kentucky, Ohio, Tennessee, Virginia, and West Virginia, as well as had leasehold positions. The company was formerly known as Carbon Natural Gas Company and changed its name to Carbon Energy Corporation in June 2018. Carbon Energy Corporation was founded in 2007 and is based in Denver, Colorado.

About Amplify Energy

Amplify Energy Corp., together with its subsidiaries, engages in the acquisition, development, exploitation, and production of oil and natural gas properties in the United States. The company’s properties consist of operated and non-operated working interests in producing and undeveloped leasehold acreage, as well as working interests in identified producing wells located in Oklahoma, the Rockies, federal waters offshore Southern California, East Texas/North Louisiana, and Eagle Ford. The company is based in Houston, Texas.