Critical Contrast: Northern Oil and Gas (NYSE:NOG) versus Sanchez Energy (OTCMKTS:SNEC)

Northern Oil and Gas (NYSE:NOG) and Sanchez Energy (OTCMKTS:SNEC) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitability, valuation, earnings and analyst recommendations.

Profitability

This table compares Northern Oil and Gas and Sanchez Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northern Oil and Gas	33.44%	27.52%	12.28%
Sanchez Energy	2.22%	-18.15%	3.09%

Earnings and Valuation

This table compares Northern Oil and Gas and Sanchez Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northern Oil and Gas	$2.16 billion	1.98	$922.97 million	$8.33	5.15
Sanchez Energy	$1.06 billion	0.01	$85.21 million	N/A	N/A

Northern Oil and Gas has higher revenue and earnings than Sanchez Energy.

Volatility & Risk

Northern Oil and Gas has a beta of 1.8, indicating that its share price is 80% more volatile than the S&P 500. Comparatively, Sanchez Energy has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500.

Institutional and Insider Ownership

98.8% of Northern Oil and Gas shares are held by institutional investors. Comparatively, 0.6% of Sanchez Energy shares are held by institutional investors. 2.8% of Northern Oil and Gas shares are held by company insiders. Comparatively, 11.1% of Sanchez Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Northern Oil and Gas and Sanchez Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northern Oil and Gas	0	3	7	1	2.82
Sanchez Energy	0	0	0	0	0.00

Northern Oil and Gas currently has a consensus target price of $47.50, indicating a potential upside of 10.70%. Given Northern Oil and Gas’ stronger consensus rating and higher possible upside, analysts plainly believe Northern Oil and Gas is more favorable than Sanchez Energy.

Summary

Northern Oil and Gas beats Sanchez Energy on 12 of the 13 factors compared between the two stocks.

About Northern Oil and Gas

Northern Oil and Gas, Inc., an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the United States. It primarily holds interests in the Williston Basin, the Appalachian Basin, and the Permian Basin in the United States. The company is based in Minnetonka, Minnesota.

About Sanchez Energy

Sanchez Energy Corporation, an independent exploration and production company, focuses on the acquisition and development of onshore unconventional oil and natural gas resources in the United States. It engages in the horizontal development of resources from the Eagle Ford Shale in South Texas. It also holds an undeveloped acreage position in the Tuscaloosa Marine Shale (TMS) in Mississippi and Louisiana. As of December 31, 2018, the company had assembled approximately 271,000 net acres in the Eagle Ford Shale; and owned approximately 34,000 net acres in the TMS. Sanchez Energy Corporation was founded in 2011 and is headquartered in Houston, Texas.