California Resources (NYSE:CRC) and SandRidge Permian Trust (NYSE:PER) are both small-cap oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.
Earnings & Valuation
This table compares California Resources and SandRidge Permian Trust’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|California Resources||$2.01 billion||0.53||-$266.00 million||($4.40)||-4.96|
|SandRidge Permian Trust||$28.80 million||3.94||$24.34 million||N/A||N/A|
SandRidge Permian Trust has lower revenue, but higher earnings than California Resources.
Risk & Volatility
California Resources has a beta of 5.41, meaning that its share price is 441% more volatile than the S&P 500. Comparatively, SandRidge Permian Trust has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.
This is a summary of recent ratings and target prices for California Resources and SandRidge Permian Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SandRidge Permian Trust||0||0||0||0||N/A|
California Resources currently has a consensus target price of $37.30, indicating a potential upside of 70.94%. Given California Resources’ higher probable upside, equities analysts clearly believe California Resources is more favorable than SandRidge Permian Trust.
Institutional & Insider Ownership
71.4% of California Resources shares are owned by institutional investors. Comparatively, 3.9% of SandRidge Permian Trust shares are owned by institutional investors. 1.3% of California Resources shares are owned by insiders. Comparatively, 29.0% of SandRidge Permian Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares California Resources and SandRidge Permian Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SandRidge Permian Trust||83.18%||19.81%||19.81%|
SandRidge Permian Trust pays an annual dividend of $0.46 per share and has a dividend yield of 21.3%. California Resources does not pay a dividend.
SandRidge Permian Trust beats California Resources on 8 of the 13 factors compared between the two stocks.
About California Resources
California Resources Corporation operates as an oil and natural gas exploration and production company in the State of California. The company sells crude oil, natural gas, and natural gas liquids to marketers, California refineries, and other purchasers that have access to transportation and storage facilities. It holds interests in approximately 2.3 million net acres of mineral acreage. As of December 31, 2017, the company had net proved reserves of 618 million barrels of oil equivalent. It also generates and sells electricity to the grid and utility customers. The company was founded in 2014 and is headquartered in Los Angeles, California.
About SandRidge Permian Trust
SandRidge Permian Trust holds royalty interests in specified oil and natural gas properties in the Permian Basin located in Andrews County, Texas. It has proved developed reserves of approximately 0.3 million barrels of oil equivalent. The company was founded in 2011 and is based in Houston, Texas.
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