Head-To-Head Contrast: Antero Resources (AR) versus Earthstone Energy (ESTE)

Antero Resources (NYSE:AR) and Earthstone Energy (NYSE:ESTE) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, dividends, risk, institutional ownership and valuation.

Risk and Volatility

Antero Resources has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Earthstone Energy has a beta of 1.85, indicating that its share price is 85% more volatile than the S&P 500.

Profitability

This table compares Antero Resources and Earthstone Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Antero Resources -9.58% 3.70% 1.97%
Earthstone Energy 11.99% 3.75% 3.08%

Insider and Institutional Ownership

98.9% of Antero Resources shares are owned by institutional investors. Comparatively, 19.7% of Earthstone Energy shares are owned by institutional investors. 9.4% of Antero Resources shares are owned by insiders. Comparatively, 63.0% of Earthstone Energy shares are owned 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 breakdown of recent recommendations for Antero Resources and Earthstone Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Antero Resources 2 8 5 0 2.20
Earthstone Energy 0 0 7 0 3.00

Antero Resources presently has a consensus price target of $17.04, indicating a potential upside of 123.64%. Earthstone Energy has a consensus price target of $11.40, indicating a potential upside of 56.16%. Given Antero Resources’ higher probable upside, research analysts clearly believe Antero Resources is more favorable than Earthstone Energy.

Earnings and Valuation

This table compares Antero Resources and Earthstone Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Antero Resources $4.14 billion 0.57 -$397.51 million $0.77 9.90
Earthstone Energy $165.36 million 2.83 $42.33 million $1.44 5.07

Earthstone Energy has lower revenue, but higher earnings than Antero Resources. Earthstone Energy is trading at a lower price-to-earnings ratio than Antero Resources, indicating that it is currently the more affordable of the two stocks.

Summary

Earthstone Energy beats Antero Resources on 10 of the 14 factors compared between the two stocks.

About Antero Resources

Antero Resources Corporation, an independent oil and natural gas company, acquires, explores for, develops, and produces natural gas, natural gas liquids, and oil properties in the United States. As of December 31, 2018, the company had approximately 486,000 net acres in the southwestern core of the Marcellus Shale; 125,000 net acres in the core of the Utica Shale; and 209,000 net acres of Marcellus Shale leasehold. It also owned and operated 289 miles of gas gathering pipelines in the Marcellus Shale; 17 compressor stations in the Marcellus Shale; 108 miles of low-pressure and high-pressure gathering pipelines in the Utica Shale; 8 miles of high-pressure pipelines; and 2 compressor station in the Utica Shale. The company had estimated proved reserves of 18.0 trillion cubic feet of natural gas equivalent, including 11.4 trillion cubic feet of natural gas; 554 million barrels of ethane; 498 million barrels of primarily propane, isobutane, normal butane, and natural gasoline; and 46 million barrels of oil. The company was formerly known as Antero Resources Appalachian Corporation and changed its name to Antero Resources Corporation in June 2013. Antero Resources Corporation was founded in 2002 and is headquartered in Denver, Colorado.

About Earthstone Energy

Earthstone Energy, Inc., an independent energy company, engages in the development and operation of oil and gas properties in the United States. Its asset portfolio includes the Midland Basin of west Texas and the Eagle Ford trend of south Texas. As of December 31, 2018, the company operated 93 gross Eagle Ford wells; and 13 gross Austin Chalk wells, as well as had 98,847 thousand barrels of oil equivalent (MBOE) of total proved reserves comprised 23,646 MBOE of proved developed reserves and 75,201 MBOE of proved undeveloped reserves. Earthstone Energy, Inc. was founded in 1969 and is headquartered in The Woodlands, Texas.

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