Bonanza Creek Energy (NYSE: BCEI) and Atlas Energy Group (OTCMKTS:ATLS) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Institutional & Insider Ownership

91.3% of Bonanza Creek Energy shares are owned by institutional investors. Comparatively, 0.4% of Atlas Energy Group shares are owned by institutional investors. 0.6% of Bonanza Creek Energy shares are owned by company insiders. Comparatively, 12.4% of Atlas Energy Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

Bonanza Creek Energy has a beta of 1.99, suggesting that its stock price is 99% more volatile than the S&P 500. Comparatively, Atlas Energy Group has a beta of -1.64, suggesting that its stock price is 264% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Bonanza Creek Energy and Atlas Energy Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bonanza Creek Energy 0 3 0 0 2.00
Atlas Energy Group 0 0 0 0 N/A

Bonanza Creek Energy currently has a consensus target price of $25.00, indicating a potential downside of 18.80%. Given Bonanza Creek Energy’s higher probable upside, research analysts clearly believe Bonanza Creek Energy is more favorable than Atlas Energy Group.

Earnings and Valuation

This table compares Bonanza Creek Energy and Atlas Energy Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bonanza Creek Energy $195.29 million 3.22 -$198.95 million ($153.96) -0.20
Atlas Energy Group $137.16 million 0.01 -$13.10 million ($0.78) -0.05

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

Profitability

This table compares Bonanza Creek Energy and Atlas Energy Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bonanza Creek Energy -33.79% -3.17% -1.09%
Atlas Energy Group -676.76% N/A -64.37%

Summary

Bonanza Creek Energy beats Atlas Energy Group on 7 of the 11 factors compared between the two stocks.

About Bonanza Creek Energy

Bonanza Creek Energy, Inc. (Bonanza Creek) is an independent energy company engaged in the acquisition, exploration, development and production of onshore oil and associated liquids-rich natural gas in the United States. The Company’s oil and liquids-weighted assets are concentrated primarily in the Wattenberg Field in Colorado and the Dorcheat Macedonia Field in southern Arkansas. In addition, the Company owns and operates oil-producing assets in the North Park Basin in Colorado and the McKamie Patton Field in southern Arkansas. The main areas in which the Company operates in the Rocky Mountain region are the Wattenberg Field in Weld County, Colorado and the North Park Basin in Jackson County, Colorado. Its Wattenberg Field operations are in the oil and liquids-weighted extension area of the Wattenberg Field targeting the Niobrara and Codell formations. In southern Arkansas, it targets the oil-rich Cotton Valley sands in the Dorcheat Macedonia and McKamie Patton Fields.

About Atlas Energy Group

Atlas Energy Group, LLC is an energy management company, which acquires and develops upstream and midstream oil and gas assets. The Company has ownership interests in the general partner Class A units, and over 23.3% limited partner interest in Atlas Resource Partners, L.P. (ARP), which is an independent developer and producer of natural gas, crude oil and natural gas liquids; over 80% general partner interest and approximately 2.1% limited partner interest in Atlas Growth Partners, L.P. (AGP), which conducts natural gas and oil operations in the mid-continent region of the United States, and owns approximately 15.9% general partner interest and over 12% limited partner interest in Lightfoot Capital Partners, L.P. and Lightfoot Capital Partners GP, LLC, its general partner, which incubates new master limited partnerships (MLPs) and invests in existing MLPs. Its segments include ARP, AGP, and Corporate and other. The Company focuses on the development and growth of energy enterprises.

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