QEP Resources (NYSE:QEP) & Akorn (NYSE:UPLCQ) Financial Review

QEP Resources (NYSE:QEP) and Akorn (OTCMKTS:UPLCQ) are both small-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Profitability

This table compares QEP Resources and Akorn’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QEP Resources 15.74% 0.68% 0.34%
Akorn -48.05% -2.61% 1.57%

Analyst Recommendations

This is a summary of recent ratings and target prices for QEP Resources and Akorn, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QEP Resources 2 6 3 0 2.09
Akorn 0 0 0 0 N/A

QEP Resources currently has a consensus target price of $2.39, suggesting a potential upside of 109.55%. Given QEP Resources’ higher possible upside, analysts clearly believe QEP Resources is more favorable than Akorn.

Earnings and Valuation

This table compares QEP Resources and Akorn’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
QEP Resources $1.21 billion 0.23 -$97.30 million N/A N/A
Akorn $742.03 million 0.00 $107.99 million N/A N/A

Akorn has lower revenue, but higher earnings than QEP Resources.

Institutional and Insider Ownership

60.9% of QEP Resources shares are held by institutional investors. Comparatively, 0.0% of Akorn shares are held by institutional investors. 2.9% of QEP Resources shares are held by insiders. Comparatively, 1.8% of Akorn shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

QEP Resources has a beta of 4.83, indicating that its share price is 383% more volatile than the S&P 500. Comparatively, Akorn has a beta of -1.04, indicating that its share price is 204% less volatile than the S&P 500.

Summary

QEP Resources beats Akorn on 10 of the 12 factors compared between the two stocks.

About QEP Resources

QEP Resources, Inc. operates as a crude oil and natural gas exploration and production company in the United States. The company conducts exploration and production activities in the Permian Basin in Western Texas; and Williston Basin in North Dakota. As of December 31, 2018, it had estimated proved reserves of approximately 658.2 MMboe. The company sells its gas, oil, and natural gas liquids to various customers, including wholesale marketers, industrial users, local distribution companies, midstream service providers, and utility companies. QEP Resources, Inc. was incorporated in 2010 and is headquartered in Denver, Colorado.

About Akorn

Ultra Petroleum Corp., an independent oil and gas company, engages in the acquisition, exploration, development, operation, and production of oil and natural gas properties. Its principal business activities are developing its natural gas reserves in the Green River Basin of southwest WyomingÂthe Pinedale and Jonah fields. As of December 31, 2018, the company owned interests in approximately 114,000 gross acres in Wyoming. The company was founded in 1979 and is headquartered in Englewood, Colorado. On May 14, 2020, Ultra Petroleum Corp., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.

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