Comparing Extraction Oil & Gas (OTCMKTS:XOGAQ) & Anadarko Petroleum (NASDAQ:APC)

Anadarko Petroleum (NASDAQ:APC) and Extraction Oil & Gas (OTCMKTS:XOGAQ) are both small-cap energy companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Anadarko Petroleum and Extraction Oil & Gas, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Anadarko Petroleum	1	1	3	2	2.86
Extraction Oil & Gas	0	0	0	0	0.00

Anadarko Petroleum currently has a consensus target price of $21.60, suggesting a potential upside of 9.70%. Given Anadarko Petroleum’s stronger consensus rating and higher possible upside, equities analysts plainly believe Anadarko Petroleum is more favorable than Extraction Oil & Gas.

Insider and Institutional Ownership

85.2% of Anadarko Petroleum shares are owned by institutional investors. Comparatively, 38.6% of Extraction Oil & Gas shares are owned by institutional investors. 0.5% of Anadarko Petroleum shares are owned by insiders. Comparatively, 6.0% of Extraction Oil & Gas shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Anadarko Petroleum has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500. Comparatively, Extraction Oil & Gas has a beta of 2.1, suggesting that its share price is 110% more volatile than the S&P 500.

Earnings and Valuation

This table compares Anadarko Petroleum and Extraction Oil & Gas”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Anadarko Petroleum	$5.58 billion	0.04	$615.00 million	$0.43	45.79
Extraction Oil & Gas	$906.64 million	0.01	-$1.39 billion	($0.46)	-0.13

Anadarko Petroleum has higher revenue and earnings than Extraction Oil & Gas. Extraction Oil & Gas is trading at a lower price-to-earnings ratio than Anadarko Petroleum, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Anadarko Petroleum and Extraction Oil & Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Anadarko Petroleum	-4.20%	10.49%	2.68%
Extraction Oil & Gas	-223.86%	-56.20%	-11.52%

Summary

Anadarko Petroleum beats Extraction Oil & Gas on 13 of the 15 factors compared between the two stocks.

About Anadarko Petroleum

Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of oil and gas properties. It operates through three segments: Exploration and Production, WES Midstream, and Other Midstream. The company explores for and produces oil, natural gas, and natural gas liquids (NGLs). It is also involved in gathering, processing, treating, and transporting oil, natural-gas, and NGLs production, as well as the gathering and disposal of produced water. The company's oil and natural gas properties are located in the United States onshore and deepwater Gulf of Mexico; and Algeria, Ghana, Mozambique, Colombia, Peru, and other countries. As of December 31, 2018, it had approximately 1.5 billion barrels of oil equivalent of proved reserves. The company was founded in 1959 and is headquartered in The Woodlands, Texas.

About Extraction Oil & Gas

Extraction Oil & Gas, Inc., an independent oil and gas company, focuses on the acquisition, development, and production of oil, natural gas, and natural gas liquid reserves in the Rocky Mountain region, primarily in the Wattenberg Field of the Denver-Julesburg (DJ) Basin of Colorado. The company also engages in the construction and support of midstream assets to gather, process, and produce crude oil and gas. As of December 31, 2019, it had approximately 169,900 net acres of contiguous acreage blocks in the productive areas of the DJ Basin; held approximately 125,500 net acres outside of the Core DJ Basin; had estimated proved reserves of approximately 254.1 MMBoe; and had 1,509 gross producing wells. The company was founded in 2012 and is headquartered in Denver, Colorado. On June 14, 2020, Extraction Oil & Gas, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.