Antero Resources (NYSE:AR) and Continental Resources (NYSE:CLR) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, dividends, profitability, earnings and valuation.
Volatility and Risk
Antero Resources has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, Continental Resources has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.
This table compares Antero Resources and Continental Resources’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Antero Resources||$3.66 billion||1.62||$615.07 million||$0.12||155.67|
|Continental Resources||$3.12 billion||7.28||$789.44 million||$0.51||118.53|
Continental Resources has lower revenue, but higher earnings than Antero Resources. Continental Resources is trading at a lower price-to-earnings ratio than Antero Resources, indicating that it is currently the more affordable of the two stocks.
This table compares Antero Resources and Continental Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and target prices for Antero Resources and Continental Resources, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Antero Resources presently has a consensus price target of $23.75, indicating a potential upside of 27.14%. Continental Resources has a consensus price target of $72.27, indicating a potential upside of 19.55%. Given Antero Resources’ higher probable upside, equities analysts clearly believe Antero Resources is more favorable than Continental Resources.
Insider and Institutional Ownership
94.9% of Antero Resources shares are owned by institutional investors. Comparatively, 22.5% of Continental Resources shares are owned by institutional investors. 9.4% of Antero Resources shares are owned by company insiders. Comparatively, 76.8% of Continental Resources 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.
Continental Resources beats Antero Resources on 10 of the 14 factors compared between the two stocks.
About Antero Resources
Antero Resources Corporation, an independent oil and natural gas company, acquires, explores, produces, and develops natural gas, natural gas liquids, and oil properties in the United States. As of December 31, 2017 had approximately 484,000 net acres in the southwestern core of the Marcellus Shale; approximately 137,000 net acres in the core of the Utica Shale; and approximately 214,000 net acres of Marcellus Shale leasehold. It also owned and operated 242 miles of gas gathering pipelines in the Marcellus Shale; and 123 miles of low-pressure, high-pressure, and condensate gathering pipelines in the Utica Shale; and 8 miles of high-pressure pipelines, as well as one compressor station. The company was formerly known as Antero Resources Appalachian Corporation and changed its name to Antero Resources Corporation in June 2013. Antero Resources Corporation was founded in 2002 and is headquartered in Denver, Colorado.
About Continental Resources
Continental Resources, Inc. explores for, develops, and produces crude oil and natural gas properties in the north, south, and east regions of the United States. The company sells its crude oil and natural gas production to energy marketing companies, crude oil refining companies, and natural gas gathering and processing companies. As of December 31, 2016, its estimated proved reserves were 1,331 million barrels of crude oil equivalent (MMBoe) with estimated proved developed reserves of 602 MMBoe. Continental Resources, Inc. was founded in 1967 and is based in Oklahoma City, Oklahoma.
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