Reviewing Amplify Energy (NYSE:AMPY) & U.S. Energy (NASDAQ:USEG)

U.S. Energy (NASDAQ:USEG) and Amplify Energy (NYSE:AMPY) are both small-cap energy companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.

Insider & Institutional Ownership

3.0% of U.S. Energy shares are held by institutional investors. Comparatively, 42.8% of Amplify Energy shares are held by institutional investors. 31.3% of U.S. Energy shares are held by company insiders. Comparatively, 10.3% of Amplify Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares U.S. Energy and Amplify Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
U.S. Energy	-195.49%	-51.91%	-29.64%
Amplify Energy	16.69%	-4.10%	-2.39%

Earnings and Valuation

This table compares U.S. 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
U.S. Energy	$7.35 million	6.81	-$14.37 million	($0.45)	-2.51
Amplify Energy	$263.36 million	0.98	$43.97 million	$0.98	6.35

Amplify Energy has higher revenue and earnings than U.S. Energy. U.S. 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.

Analyst Recommendations

This is a summary of recent recommendations for U.S. Energy and Amplify Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
U.S. Energy	1	0	1	0	2.00
Amplify Energy	0	1	2	0	2.67

U.S. Energy currently has a consensus price target of $3.50, suggesting a potential upside of 209.73%. Amplify Energy has a consensus price target of $6.00, suggesting a potential downside of 3.61%. Given U.S. Energy’s higher probable upside, equities research analysts plainly believe U.S. Energy is more favorable than Amplify Energy.

Risk & Volatility

U.S. Energy has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Amplify Energy has a beta of -0.13, suggesting that its share price is 113% less volatile than the S&P 500.

Summary

Amplify Energy beats U.S. Energy on 10 of the 14 factors compared between the two stocks.

About U.S. Energy

U.S. Energy Corp., an independent energy company, focuses on the acquisition, exploration, and development of oil and natural gas properties in the United States. It holds interests in various oil and gas properties located in the Rockies region, including Montana, Wyoming, and North Dakota; the Mid-Continent region comprising Oklahoma, Kansas, and North and East Texas; West Texas; South Texas; and the Gulf Coast regions. The company was incorporated in 1966 and is headquartered in Houston, 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.