Obsidian Energy (NYSE:OBE) and Antero Resources (NYSE:AR) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.
Valuation & Earnings
This table compares Obsidian Energy and Antero Resources’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Obsidian Energy||$342.58 million||0.17||-$235.31 million||($2.94)||-0.27|
|Antero Resources||$4.14 billion||0.17||-$397.51 million||$0.77||3.05|
Obsidian Energy has higher earnings, but lower revenue than Antero Resources. Obsidian Energy is trading at a lower price-to-earnings ratio than Antero Resources, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Obsidian Energy has a beta of 3.26, suggesting that its stock price is 226% more volatile than the S&P 500. Comparatively, Antero Resources has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.
Insider & Institutional Ownership
11.1% of Obsidian Energy shares are held by institutional investors. Comparatively, 95.6% of Antero Resources shares are held by institutional investors. 9.7% of Antero Resources shares are held 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.
This table compares Obsidian Energy and Antero Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and recommmendations for Obsidian Energy and Antero Resources, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Obsidian Energy presently has a consensus target price of $1.17, indicating a potential upside of 49.57%. Antero Resources has a consensus target price of $8.02, indicating a potential upside of 241.39%. Given Antero Resources’ stronger consensus rating and higher possible upside, analysts plainly believe Antero Resources is more favorable than Obsidian Energy.
Antero Resources beats Obsidian Energy on 12 of the 14 factors compared between the two stocks.
Obsidian Energy Company Profile
Obsidian Energy Ltd. explores for, develops, and produces oil and natural gas in western Canada. It holds interests in the Alberta Viking, Cardium, Deep Basin, and Peace River areas. The company was formerly known as Penn West Petroleum Ltd. and changed its name to Obsidian Energy Ltd. in June 2017. Obsidian Energy Ltd. was founded in 1979 and is headquartered in Calgary, Canada.
Antero Resources Company Profile
Antero Resources Corporation, an independent oil and natural gas company, acquires, explores for, develops, and produces natural gas, natural gas liquids, and oil properties in the United States. As of December 31, 2018, the company had approximately 486,000 net acres in the southwestern core of the Marcellus Shale; 125,000 net acres in the core of the Utica Shale; and 209,000 net acres of Marcellus Shale leasehold. It also owned and operated 289 miles of gas gathering pipelines in the Marcellus Shale; 17 compressor stations in the Marcellus Shale; 108 miles of low-pressure and high-pressure gathering pipelines in the Utica Shale; 8 miles of high-pressure pipelines; and 2 compressor station in the Utica Shale. The company had estimated proved reserves of 18.0 trillion cubic feet of natural gas equivalent, including 11.4 trillion cubic feet of natural gas; 554 million barrels of ethane; 498 million barrels of primarily propane, isobutane, normal butane, and natural gasoline; and 46 million barrels of oil. 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.
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