Stone Energy Corporation (NYSE: SGY) and Gastar Exploration (NYSE:GST) are both small-cap oils/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.
Earnings & Valuation
This table compares Stone Energy Corporation and Gastar Exploration’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Stone Energy Corporation||$377.39 million||1.76||-$590.58 million||N/A||N/A|
Gastar Exploration has higher revenue, but lower earnings than Stone Energy Corporation.
Risk and Volatility
Stone Energy Corporation has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500. Comparatively, Gastar Exploration has a beta of 3.41, meaning that its share price is 241% more volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Stone Energy Corporation and Gastar Exploration, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Stone Energy Corporation||0||2||1||0||2.33|
Stone Energy Corporation currently has a consensus price target of $6.25, indicating a potential downside of 81.17%. Gastar Exploration has a consensus price target of $1.40, indicating a potential upside of 61.74%. Given Gastar Exploration’s higher possible upside, analysts clearly believe Gastar Exploration is more favorable than Stone Energy Corporation.
This table compares Stone Energy Corporation and Gastar Exploration’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Stone Energy Corporation||68.43%||590.23%||37.33%|
Institutional and Insider Ownership
96.4% of Stone Energy Corporation shares are owned by institutional investors. 3.5% of Stone Energy Corporation 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.
Stone Energy Corporation beats Gastar Exploration on 7 of the 9 factors compared between the two stocks.
About Stone Energy Corporation
Stone Energy Corporation is an independent oil and natural gas company. The Company is engaged in the acquisition, exploration, exploitation, development and operation of oil and gas properties. The Company operates in the Gulf of Mexico (GOM) basin. It has leveraged its operations in the GOM conventional shelf and has its reserve base in the prolific basins of the GOM deep water, Gulf Coast deep gas, and the Marcellus and Utica shales in Appalachia. Its estimated proved oil and natural gas reserves are over 60 million barrels of oil equivalents (MMBoe) or 340 billion cubic feet equivalent (Bcfe). Over 95 MMBoe or 570 Bcfe of its estimated proved reserves are revised downward. It has made investments in seismic data and leasehold interests, and has geological, geophysical, engineering and operational operations in deep water arena to evaluate potential exploration, development and acquisition opportunities. It holds over two deep water platforms, producing reserves and various leases.
About Gastar Exploration
Gastar Exploration Inc., an independent energy company, engages in the exploration, development, and production of oil, condensate, natural gas, and natural gas liquids in the United States. Its principal activities include the identification, acquisition, exploration, and development of oil and natural gas properties on unconventional reserves, such as shale resource plays. The company holds interests in the oil and natural gas-rich reservoirs, including the Meramec and Osage, the Oswego limestone, the Woodford shale, and Hunton limestone formations. As of December 31, 2016, its principal assets included the STACK play covering approximately 83,800 net acres located in the Mid-Continent area of the United States, as well as approximately 14,500 net acres in the Appalachian Basin in West Virginia. The company was formerly known as Gastar Exploration Ltd. and changed its name to Gastar Exploration Inc. in January 2014. Gastar Exploration Inc. is based in Houston, Texas.
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