Financial Review: NOSTRUM OIL & G/ADR (NSTRY) versus Lonestar Resources US (LONE)

NOSTRUM OIL & G/ADR (OTCMKTS:NSTRY) and Lonestar Resources US (NASDAQ:LONE) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.

Institutional & Insider Ownership

46.6% of Lonestar Resources US shares are held by institutional investors. 2.3% of Lonestar Resources US shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

NOSTRUM OIL & G/ADR has a beta of -0.13, indicating that its share price is 113% less volatile than the S&P 500. Comparatively, Lonestar Resources US has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.

Earnings and Valuation

This table compares NOSTRUM OIL & G/ADR and Lonestar Resources US’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NOSTRUM OIL & G/ADR $405.53 million 0.95 -$23.88 million ($0.52) -15.67
Lonestar Resources US $94.07 million 2.18 -$38.66 million ($0.42) -19.79

NOSTRUM OIL & G/ADR has higher revenue and earnings than Lonestar Resources US. Lonestar Resources US is trading at a lower price-to-earnings ratio than NOSTRUM OIL & G/ADR, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares NOSTRUM OIL & G/ADR and Lonestar Resources US’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NOSTRUM OIL & G/ADR -10.35% -5.91% -1.75%
Lonestar Resources US -37.79% -5.39% -1.62%

Analyst Ratings

This is a breakdown of current recommendations for NOSTRUM OIL & G/ADR and Lonestar Resources US, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NOSTRUM OIL & G/ADR 0 0 0 0 N/A
Lonestar Resources US 0 0 6 0 3.00

Lonestar Resources US has a consensus target price of $11.50, indicating a potential upside of 38.39%. Given Lonestar Resources US’s higher probable upside, analysts clearly believe Lonestar Resources US is more favorable than NOSTRUM OIL & G/ADR.

Summary

Lonestar Resources US beats NOSTRUM OIL & G/ADR on 9 of the 13 factors compared between the two stocks.

About NOSTRUM OIL & G/ADR

Nostrum Oil & Gas PLC, an independent oil and gas company, engages in the exploration, development, and production of oil and gas in the pre-Caspian Basin. The company discovers and develops oil and gas reserves, as well as produces and sells crude oil, stabilized condensate, liquefied petroleum gas, and dry gas. Its principal producing asset is the Chinarevskoye field located in north-west Kazakhstan. As of January 1, 2018, the company had a proved and probable reserve of 488mmboe. The company was founded in 1997 and is headquartered in Amsterdam, the Netherlands.

About Lonestar Resources US

Lonestar Resources US Inc., an independent oil and gas company, engages in the acquisition, development, and production of unconventional oil, natural gas liquids, and natural gas properties in the United States. The company primarily focuses on Eagle Ford Shale properties in Texas counties. Lonestar Resources US Inc. was incorporated in 2015 and is headquartered in Fort Worth, Texas.

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