Financial Comparison: Enerplus (ERF) & Isramco (ISRL)

Enerplus (NYSE:ERF) and Isramco (NASDAQ:ISRL) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.

Earnings & Valuation

This table compares Enerplus and Isramco’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enerplus $997.46 million 2.07 $291.84 million $1.09 7.96
Isramco $81.34 million 3.76 $17.93 million N/A N/A

Enerplus has higher revenue and earnings than Isramco.

Profitability

This table compares Enerplus and Isramco’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enerplus 32.58% 12.78% 7.64%
Isramco 22.07% -139.32% 15.63%

Dividends

Enerplus pays an annual dividend of $0.09 per share and has a dividend yield of 1.0%. Isramco does not pay a dividend. Enerplus pays out 8.3% of its earnings in the form of a dividend.

Institutional & Insider Ownership

57.6% of Enerplus shares are held by institutional investors. Comparatively, 5.0% of Isramco shares are held by institutional investors. 73.3% of Isramco shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Enerplus and Isramco, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enerplus 0 1 3 0 2.75
Isramco 0 0 0 0 N/A

Enerplus presently has a consensus target price of $19.50, suggesting a potential upside of 124.65%. Given Enerplus’ higher possible upside, analysts clearly believe Enerplus is more favorable than Isramco.

Volatility & Risk

Enerplus has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500. Comparatively, Isramco has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500.

Summary

Enerplus beats Isramco on 9 of the 14 factors compared between the two stocks.

About Enerplus

Enerplus Corporation, together with subsidiaries, engages in the exploration and development of crude oil and natural gas in the United States and Canada. The company's oil and natural gas properties are located primarily in North Dakota, Montana, Colorado, and Pennsylvania; and Alberta, British Columbia, and Saskatchewan. As of December 31, 2018, it had proved plus probable gross reserves of approximately 12.7 million barrels (MMbbls) of light and medium crude oil; 28.4 MMbbls of heavy crude oil; 167.2 MMbbls of tight oil; 21.1 MMbbls of natural gas liquids; 41.1 billion cubic feet (Bcf) of conventional natural gas; and 1,149.5 Bcf of shale gas. The company was founded in 1986 and is headquartered in Calgary, Canada.

About Isramco

Isramco, Inc., an independent oil and natural gas company, engages in the exploration, development, and production of oil and natural gas properties located onshore in the United States and offshore Israel. It operates in two segments, Oil and Gas Exploration and Production; and Production Services. The Oil and Gas Exploration and Production segment owns working interests in oil and gas wells in Louisiana, Texas, New Mexico, Oklahoma, Wyoming, Utah, and Colorado; and operates approximately 422 producing wells located primarily in Texas and New Mexico. It also has overriding royalty interests in the Tamar Field located in offshore Israel. This segment sells its oil and natural gas to independent marketers, oil and natural gas companies, and gas pipeline companies. The Production Services segment operates a fleet of production servicing rigs and trucks that provide a range of production services, including completion of newly-drilled wells; maintenance and workover of existing wells; fluid transportation; and related oilfield services, as well as plugging and abandonment of wells to oil and gas exploration and production companies. As of December 31, 2018, the company had estimated total proved oil, natural gas reserves, and natural gas liquids, which include approximately 40,267 thousand barrels (MBbls) of oil equivalent comprising 2,125 MBbls of oil; 223,915 million cubic feet of natural gas; and 823 MBbls of natural gas liquids, as well as 33 production servicing rigs primarily in Texas and New Mexico. Isramco, Inc. was founded in 1982 and is based in Houston, Texas.

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