Noble (NYSE:NE) & New Source Energy Partners (OTCMKTS:NSLPQ) Critical Survey

Noble (NYSE:NE) and New Source Energy Partners (OTCMKTS:NSLPQ) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Risk & Volatility

Noble has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, New Source Energy Partners has a beta of 3.6, indicating that its share price is 260% more volatile than the S&P 500.

Profitability

This table compares Noble and New Source Energy Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Noble	6.60%	2.34%	1.40%
New Source Energy Partners	N/A	N/A	N/A

Earnings and Valuation

This table compares Noble and New Source Energy Partners”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Noble	$3.29 billion	2.35	$216.72 million	$1.35	35.93
New Source Energy Partners	N/A	N/A	N/A	N/A	N/A

Noble has higher revenue and earnings than New Source Energy Partners.

Institutional and Insider Ownership

68.1% of Noble shares are owned by institutional investors. 1.5% of Noble shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Noble and New Source Energy Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Noble	1	10	1	0	2.00
New Source Energy Partners	0	0	0	0	0.00

Noble currently has a consensus price target of $38.63, suggesting a potential downside of 20.37%. Given New Source Energy Partners’ higher probable upside, analysts plainly believe New Source Energy Partners is more favorable than Noble.

Summary

Noble beats New Source Energy Partners on 8 of the 10 factors compared between the two stocks.

About Noble

Noble Corp. Plc engages in the provision offshore drilling services for oil and gas industry. It focuses on a balanced fleet of floating and jackup rigs and the deployment of drilling rigs in oil and gas basins around the world. The company was founded by Lloyd Noble and Art Olson in 1921 and is headquartered in London, the United Kingdom.

About New Source Energy Partners

New Source Energy Partners L.P. acquires, owns, develops, and produces oil and natural gas properties in the United States. It operates through two segments, Exploration and Production, and Oilfield Services. The company also offers various oilfield services, including wellsite services during the drilling and completion stages of a well, such as blowout prevention, surface valve, and flowback services for horizontal and vertical wells in oil, natural gas, and NGL production regions in North America. New Source Energy GP, LLC operates as a general partner of the company. The company was founded in 2012 and is headquartered in Oklahoma City, Oklahoma. On March 15, 2016, New Source Energy Partners LP, along with its affiliate, filed a voluntary petition for liquidation under Chapter 7 in the US Bankruptcy Court for the District of Delaware.