Sonde Resources (OTCMKTS:SOQDQ) and Extraction Oil & Gas (NASDAQ:XOG) 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 risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.
Valuation & Earnings
This table compares Sonde Resources and Extraction Oil & Gas’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Extraction Oil & Gas||$604.30 million||1.01||-$44.40 million||$0.03||115.00|
Sonde Resources has higher earnings, but lower revenue than Extraction Oil & Gas.
Risk and Volatility
Sonde Resources has a beta of 19.77, meaning that its share price is 1,877% more volatile than the S&P 500. Comparatively, Extraction Oil & Gas has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.
Institutional & Insider Ownership
92.1% of Extraction Oil & Gas shares are held by institutional investors. 1.9% of Sonde Resources shares are held by insiders. Comparatively, 7.9% of Extraction Oil & Gas shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Sonde Resources and Extraction Oil & Gas’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Extraction Oil & Gas||-0.87%||2.07%||0.91%|
This is a breakdown of recent recommendations and price targets for Sonde Resources and Extraction Oil & Gas, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Extraction Oil & Gas||1||5||5||0||2.36|
Extraction Oil & Gas has a consensus price target of $14.80, suggesting a potential upside of 328.99%. Given Extraction Oil & Gas’ higher probable upside, analysts clearly believe Extraction Oil & Gas is more favorable than Sonde Resources.
Extraction Oil & Gas beats Sonde Resources on 7 of the 9 factors compared between the two stocks.
Sonde Resources Company Profile
Sonde Resources Corp. is engaged in the acquisition, exploration, development, and production of petroleum and natural gas properties in offshore North Africa and Western Canada. It holds a 100% working interest in the 768,000 acre joint oil block offshore Tunisia and Libya, as well as undeveloped land positions in Duvernay play covering 44,021 net acres and Wabamun play covering 53,489 net acres in West Central and Northern Alberta. The company was formerly known as Canadian Superior Energy Inc. and changed its name to Sonde Resources Corp. in June 2010. Sonde Resources Corp. was founded in 1983 and is headquartered in Calgary, Canada.
Extraction Oil & Gas Company Profile
Extraction Oil & Gas, Inc., an independent oil and gas company, focuses on the acquisition, development, and production of oil, natural gas, and natural gas liquid reserves in the Rocky Mountain region, primarily in the Wattenberg Field of the Denver-Julesburg (DJ) Basin of Colorado. As of December 31, 2017, it had approximately 171,400 net acres of contiguous acreage blocks in the productive areas of the DJ Basin; held approximately 183,300 net acres outside of the Core DJ Basin; had estimated proved reserves of approximately 292.7 MMBoe; and had 1,300 gross producing wells. The company was founded in 2012 and is headquartered in Denver, Colorado.
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