Bonanza Creek Energy (NYSE: BCEI) and Stone Energy Corporation (NYSE:SGY) 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.

Valuation and Earnings

This table compares Bonanza Creek Energy and Stone Energy Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Bonanza Creek Energy $193.29 million 3.49 $76.38 million ($233.95) -0.14
Stone Energy Corporation $364.82 million 1.59 $201.90 million N/A N/A

Stone Energy Corporation has higher revenue and earnings than Bonanza Creek Energy.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bonanza Creek Energy 0 3 0 0 2.00
Stone Energy Corporation 1 1 1 0 2.00

Bonanza Creek Energy currently has a consensus target price of $25.00, indicating a potential downside of 24.22%. Stone Energy Corporation has a consensus target price of $6.50, indicating a potential downside of 77.63%. Given Bonanza Creek Energy’s higher probable upside, research analysts clearly believe Bonanza Creek Energy is more favorable than Stone Energy Corporation.

Institutional & Insider Ownership

91.0% of Bonanza Creek Energy shares are owned by institutional investors. Comparatively, 96.3% of Stone Energy Corporation shares are owned by institutional investors. 0.6% of Bonanza Creek Energy shares are owned by company insiders. Comparatively, 3.5% of Stone Energy Corporation 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Bonanza Creek Energy -53.37% -24.22% -4.05%
Stone Energy Corporation 41.74% -215.45% 29.97%

Volatility and Risk

Bonanza Creek Energy has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500. Comparatively, Stone Energy Corporation has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500.

Summary

Stone Energy Corporation beats Bonanza Creek Energy on 7 of the 11 factors compared between the two stocks.

Bonanza Creek Energy Company Profile

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.

Stone Energy Corporation Company Profile

Stone Energy Corporation is an independent oil and natural gas company. The Company is engaged in the acquisition, exploration, exploitation, development and operation of oil and gas properties. The Company operates in the Gulf of Mexico (GOM) basin. It has leveraged its operations in the GOM conventional shelf and has its reserve base in the prolific basins of the GOM deep water, Gulf Coast deep gas, and the Marcellus and Utica shales in Appalachia. Its estimated proved oil and natural gas reserves are over 60 million barrels of oil equivalents (MMBoe) or 340 billion cubic feet equivalent (Bcfe). Over 95 MMBoe or 570 Bcfe of its estimated proved reserves are revised downward. It has made investments in seismic data and leasehold interests, and has geological, geophysical, engineering and operational operations in deep water arena to evaluate potential exploration, development and acquisition opportunities. It holds over two deep water platforms, producing reserves and various leases.

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