Independence Contract Drilling (NYSE: ICD) and Blue Ridge Mountain Resources (OTCMKTS:MHRCQ) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.
Insider and Institutional Ownership
78.2% of Independence Contract Drilling shares are owned by institutional investors. 11.8% of Independence Contract Drilling shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Independence Contract Drilling and Blue Ridge Mountain Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Independence Contract Drilling||-34.87%||-8.28%||-6.78%|
|Blue Ridge Mountain Resources||-2,141.83%||N/A||-174.34%|
Earnings & Valuation
This table compares Independence Contract Drilling and Blue Ridge Mountain Resources’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Independence Contract Drilling||$70.06 million||2.66||-$22.17 million||($0.78)||-6.29|
|Blue Ridge Mountain Resources||N/A||N/A||N/A||($1.02)||0.00|
Blue Ridge Mountain Resources has lower revenue, but higher earnings than Independence Contract Drilling. Independence Contract Drilling is trading at a lower price-to-earnings ratio than Blue Ridge Mountain Resources, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Independence Contract Drilling has a beta of 2.8, indicating that its share price is 180% more volatile than the S&P 500. Comparatively, Blue Ridge Mountain Resources has a beta of 2.75, indicating that its share price is 175% more volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Independence Contract Drilling and Blue Ridge Mountain Resources, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Independence Contract Drilling||0||1||5||0||2.83|
|Blue Ridge Mountain Resources||0||0||0||0||N/A|
Independence Contract Drilling presently has a consensus price target of $5.94, indicating a potential upside of 20.93%. Given Independence Contract Drilling’s higher probable upside, equities research analysts clearly believe Independence Contract Drilling is more favorable than Blue Ridge Mountain Resources.
Independence Contract Drilling beats Blue Ridge Mountain Resources on 9 of the 10 factors compared between the two stocks.
About Independence Contract Drilling
Independence Contract Drilling, Inc. provides land-based contract drilling services for oil and natural gas producers in the United States. The company constructs, owns, and operates a fleet of ShaleDriller rigs to optimize the development of various oil and gas properties in the Permian Basin. As of December 31, 2016, it had 12 rigs. The company was founded in 2011 and is headquartered in Houston, Texas.
About Blue Ridge Mountain Resources
Blue Ridge Mountain Resources, Inc., formerly Magnum Hunter Resources Corporation, is an independent exploration and production company engaged in the acquisition, development and production of natural gas, natural gas liquids and crude oil, primarily in the states of West Virginia and Ohio. The Company operates through three segments: Upstream, Midstream and Oil Field Services. The Upstream segment is organized and operated to explore for and produce crude oil and natural gas within the geographic boundaries of the United States and Canada. The Midstream segment consists primarily of Eureka Hunter Holdings, LLC (Eureka Midstream Holdings), which markets natural gas and operates a network of pipelines and compression stations that gather natural gas and natural gas liquids (NGLs) in the United States for transportation to market. The Oilfield Services segment provides drilling services to oil and natural gas exploration and production companies.
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