Kosmos Energy (NYSE:KOS – Get Free Report) and Amplify Energy (NYSE:AMPY – Get Free Report) are both small-cap energy companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.
Analyst Ratings
This is a summary of recent ratings and price targets for Kosmos Energy and Amplify Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kosmos Energy | 4 | 4 | 1 | 0 | 1.67 |
| Amplify Energy | 1 | 0 | 1 | 0 | 2.00 |
Kosmos Energy currently has a consensus target price of $2.37, suggesting a potential upside of 12.39%. Amplify Energy has a consensus target price of $9.00, suggesting a potential upside of 169.87%. Given Amplify Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Amplify Energy is more favorable than Kosmos Energy.
Profitability
This table compares Kosmos Energy and Amplify Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kosmos Energy | -27.21% | -1.73% | -0.22% |
| Amplify Energy | 10.62% | -3.01% | -2.07% |
Volatility & Risk
Kosmos Energy has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Amplify Energy has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500.
Valuation and Earnings
This table compares Kosmos Energy and Amplify Energy”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kosmos Energy | $1.29 billion | 0.97 | -$699.79 million | ($1.00) | -2.11 |
| Amplify Energy | $263.36 million | 0.53 | $43.97 million | $0.45 | 7.41 |
Amplify Energy has lower revenue, but higher earnings than Kosmos Energy. Kosmos Energy is trading at a lower price-to-earnings ratio than Amplify Energy, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
95.3% of Kosmos Energy shares are owned by institutional investors. Comparatively, 42.8% of Amplify Energy shares are owned by institutional investors. 1.9% of Kosmos Energy shares are owned by company insiders. Comparatively, 9.0% of Amplify Energy shares are owned by company 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.
Summary
Amplify Energy beats Kosmos Energy on 7 of the 13 factors compared between the two stocks.
About Kosmos Energy
Kosmos Energy Ltd., together with its subsidiaries, engages in the exploration, development, and production of oil and gas along the Atlantic Margins in the United States. The company’s primary assets include production projects located in offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico, as well as gas projects located in offshore Mauritania and Senegal. It undertakes a proven basin exploration program in Equatorial Guinea and the U.S. Gulf of Mexico. Kosmos Energy Ltd. was founded in 2003 and is headquartered in Dallas, Texas.
About Amplify Energy
Amplify Energy Corp., together with its subsidiaries, engages in the acquisition, development, exploitation, and production of oil and natural gas properties in the United States. The company’s properties consist of operated and non-operated working interests in producing and undeveloped leasehold acreage, as well as working interests in identified producing wells located in Oklahoma, the Rockies, federal waters offshore Southern California, East Texas/North Louisiana, and Eagle Ford. The company is based in Houston, Texas.
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