Extraction Oil & Gas (NASDAQ:XOG) and Sonde Resources (OTCMKTS:SOQDQ) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Volatility & Risk

Extraction Oil & Gas has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, Sonde Resources has a beta of 19.77, suggesting that its stock price is 1,877% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Extraction Oil & Gas -0.87% 2.07% 0.91%
Sonde Resources N/A N/A N/A

Institutional & Insider Ownership

92.1% of Extraction Oil & Gas shares are held by institutional investors. 7.9% of Extraction Oil & Gas shares are held by company insiders. Comparatively, 1.9% of Sonde Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Extraction Oil & Gas and Sonde Resources, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Extraction Oil & Gas 1 5 5 0 2.36
Sonde Resources 0 0 0 0 N/A

Extraction Oil & Gas presently has a consensus target price of $14.80, suggesting a potential upside of 319.26%. Given Extraction Oil & Gas’ higher probable upside, equities analysts clearly believe Extraction Oil & Gas is more favorable than Sonde Resources.

Earnings and Valuation

This table compares Extraction Oil & Gas and Sonde Resources’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Extraction Oil & Gas $604.30 million 1.03 -$44.40 million $0.03 117.67
Sonde Resources N/A N/A N/A N/A N/A

Sonde Resources has lower revenue, but higher earnings than Extraction Oil & Gas.

Summary

Extraction Oil & Gas beats Sonde Resources on 7 of the 9 factors compared between the two stocks.

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. As of December 31, 2017, it had approximately 171,400 net acres of contiguous acreage blocks in the productive areas of the DJ Basin; held approximately 183,300 net acres outside of the Core DJ Basin; had estimated proved reserves of approximately 292.7 MMBoe; and had 1,300 gross producing wells. The company was founded in 2012 and is headquartered in Denver, Colorado.

About Sonde Resources

Sonde Resources Corp. is engaged in the acquisition, exploration, development, and production of petroleum and natural gas properties in offshore North Africa and Western Canada. It holds a 100% working interest in the 768,000 acre joint oil block offshore Tunisia and Libya, as well as undeveloped land positions in Duvernay play covering 44,021 net acres and Wabamun play covering 53,489 net acres in West Central and Northern Alberta. The company was formerly known as Canadian Superior Energy Inc. and changed its name to Sonde Resources Corp. in June 2010. Sonde Resources Corp. was founded in 1983 and is headquartered in Calgary, Canada.

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