Critical Review: Amplify Energy (NYSE:AMPY) versus Pilgrim Petroleum (OTCMKTS:PGPM)

Amplify Energy (NYSE:AMPY) and Pilgrim Petroleum (OTCMKTS:PGPM) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Valuation and Earnings

This table compares Amplify Energy and Pilgrim Petroleum”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amplify Energy	$294.68 million	0.74	$12.95 million	($0.71)	-7.63
Pilgrim Petroleum	N/A	N/A	N/A	N/A	N/A

Amplify Energy has higher revenue and earnings than Pilgrim Petroleum.

Profitability

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

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

Institutional and Insider Ownership

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Amplify Energy and Pilgrim Petroleum, as reported by MarketBeat.

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

Amplify Energy currently has a consensus price target of $7.25, indicating a potential upside of 33.89%. Given Amplify Energy’s stronger consensus rating and higher possible upside, research analysts clearly believe Amplify Energy is more favorable than Pilgrim Petroleum.

Summary

Amplify Energy beats Pilgrim Petroleum on 6 of the 9 factors compared between the two stocks.

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.

About Pilgrim Petroleum

Pilgrim Petroleum Corporation, an oil and gas exploration and development company, engages in the acquisition, development, and operation of crude oil and natural gas properties with proven reserves in the United States. The company holds interests in various projects located in Northwest Texas; the Electra Rework prospect located in Wichita and Willbarger Counties, Texas; and the City National Bank Discovery Well prospect located in Archer County, Texas. It also provides services to small and medium exploration and development companies. The company was formerly known as BNP Petroleum Corp. and changed its name to Pilgrim Petroleum Corporation in July 2005. Pilgrim Petroleum Corporation was founded in 1997 and is headquartered in Addison, Texas.