Critical Survey: U.S. Energy (NASDAQ:USEG) and Comstock Resources (NYSE:CRK)

Comstock Resources (NYSE:CRK) and U.S. Energy (NASDAQ:USEG) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Institutional & Insider Ownership

36.1% of Comstock Resources shares are owned by institutional investors. Comparatively, 3.0% of U.S. Energy shares are owned by institutional investors. 2.2% of Comstock Resources shares are owned by company insiders. Comparatively, 61.0% of U.S. Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Comstock Resources	-23.39%	-0.67%	-0.24%
U.S. Energy	-111.12%	-43.67%	-23.49%

Earnings & Valuation

This table compares Comstock Resources and U.S. Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Comstock Resources	$1.25 billion	6.91	-$229.65 million	($1.11)	-26.64
U.S. Energy	$20.62 million	3.06	-$25.78 million	($0.70)	-2.65

U.S. Energy has lower revenue, but higher earnings than Comstock Resources. Comstock Resources is trading at a lower price-to-earnings ratio than U.S. Energy, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Comstock Resources has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500. Comparatively, U.S. Energy has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Comstock Resources	3	6	2	0	1.91
U.S. Energy	0	0	1	0	3.00

Comstock Resources presently has a consensus target price of $19.73, indicating a potential downside of 33.28%. U.S. Energy has a consensus target price of $3.50, indicating a potential upside of 88.68%. Given U.S. Energy’s stronger consensus rating and higher probable upside, analysts clearly believe U.S. Energy is more favorable than Comstock Resources.

About Comstock Resources

Comstock Resources, Inc., an independent energy company, engages in the acquisition, exploration, development, and production of natural gas and oil properties in the United States. Its assets are located in the Haynesville and Bossier shales located in North Louisiana and East Texas. The company was incorporated in 1919 and is headquartered in Frisco, Texas. Comstock Resources, Inc. is a subsidiary of Arkoma Drilling, L.P.

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.