SandRidge Permian Trust (NYSE: PER) and Eclipse Resources (NYSE:ECR) are both small-cap oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.
Valuation & Earnings
This table compares SandRidge Permian Trust and Eclipse Resources’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SandRidge Permian Trust||$29.87 million||4.22||$25.64 million||$0.50||4.80|
|Eclipse Resources||$235.03 million||2.55||-$203.80 million||($0.16)||-14.25|
SandRidge Permian Trust has higher earnings, but lower revenue than Eclipse Resources. Eclipse Resources is trading at a lower price-to-earnings ratio than SandRidge Permian Trust, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
SandRidge Permian Trust has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, Eclipse Resources has a beta of 3.06, meaning that its share price is 206% more volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for SandRidge Permian Trust and Eclipse Resources, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SandRidge Permian Trust||0||0||0||0||N/A|
Eclipse Resources has a consensus target price of $3.25, indicating a potential upside of 42.54%. Given Eclipse Resources’ higher probable upside, analysts plainly believe Eclipse Resources is more favorable than SandRidge Permian Trust.
Insider and Institutional Ownership
4.1% of SandRidge Permian Trust shares are held by institutional investors. Comparatively, 92.5% of Eclipse Resources shares are held by institutional investors. 29.0% of SandRidge Permian Trust shares are held by insiders. Comparatively, 1.1% of Eclipse Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
SandRidge Permian Trust pays an annual dividend of $0.38 per share and has a dividend yield of 15.8%. Eclipse Resources does not pay a dividend. SandRidge Permian Trust pays out 76.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares SandRidge Permian Trust and Eclipse Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SandRidge Permian Trust||88.09%||19.59%||19.59%|
SandRidge Permian Trust beats Eclipse Resources on 9 of the 15 factors compared between the two stocks.
SandRidge Permian Trust Company Profile
Sandridge Permian Trust (the Trust) is a statutory trust. The Trust holds Royalty Interests in specified oil and natural gas properties in the Permian Basin located in Andrews County, Texas. The Trust’s business activities are generally limited to owning the Royalty Interests, and entering into hedging arrangements at the inception of the Trust and activities related thereto, including activities required or permitted by the terms of the conveyances related to the Royalty Interests. The Trust’s properties consist of Royalty Interests in the initial wells and over 860 additional wells that are drilled and perforated for completion. The Royalty Interests are in properties located in the greater Fuhrman-Mascho field, a field in Andrews County, Texas that produces oil primarily from the Grayburg/San Andres formation in the Permian Basin. The Permian Basin extends throughout southwestern Texas and southeastern New Mexico over an area approximately 250 miles wide and over 300 miles long.
Eclipse Resources Company Profile
Eclipse Resources Corporation is an independent exploration and production company. The Company is engaged in the acquisition and development of oil and natural gas properties in the Appalachian Basin. The Company is the operator of the Utica Core Area and its Marcellus Project Area. The Ordovician-aged Utica Shale is an unconventional reservoir consisting of organic-rich black shale, with production occurring at vertical depths between 6,000 and 10,000 feet. The Marcellus Shale consists of organic-rich black shale, with production occurring at vertical depths between 5,000 and 8,000 feet. As of December 31, 2016, the Company had commenced drilling 202 gross wells within the Utica Core Area and three gross wells within its Marcellus Area. As of December 31, 2016, it had approximately 92,000 net acres in the Utica Shale in Eastern Ohio within the Utica Core Area. As of December 31, 2016, the Company had assembled an acreage position approximating 199,000 net acres in Eastern Ohio.
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