Evolution Petroleum (NYSE:EPM) vs. SandRidge Energy (OTCMKTS:SDOCQ) Critical Comparison

Evolution Petroleum (NYSE:EPM) and SandRidge Energy (OTCMKTS:SDOCQ) are both small-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.

Institutional & Insider Ownership

60.1% of Evolution Petroleum shares are owned by institutional investors. 10.5% of Evolution Petroleum shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Evolution Petroleum and SandRidge Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evolution Petroleum	0	2	2	1	2.80
SandRidge Energy	0	0	0	0	0.00

Evolution Petroleum presently has a consensus target price of $5.33, indicating a potential upside of 22.04%. Given Evolution Petroleum’s stronger consensus rating and higher possible upside, research analysts plainly believe Evolution Petroleum is more favorable than SandRidge Energy.

Profitability

This table compares Evolution Petroleum and SandRidge Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Evolution Petroleum	2.04%	2.42%	1.20%
SandRidge Energy	N/A	N/A	N/A

Earnings & Valuation

This table compares Evolution Petroleum and SandRidge Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evolution Petroleum	$85.64 million	1.79	$4.08 million	$0.08	54.63
SandRidge Energy	N/A	N/A	N/A	N/A	N/A

Evolution Petroleum has higher revenue and earnings than SandRidge Energy.

Summary

Evolution Petroleum beats SandRidge Energy on 10 of the 10 factors compared between the two stocks.

About Evolution Petroleum

Evolution Petroleum Corporation, an energy company, engages in the development, production, ownership, and exploitation of onshore oil and gas properties in the United States. The company holds a non-operated interests in the SCOOP and STACK plays located in Central Oklahoma; the Chaveroo Field situated in Chaves and Roosevelt Counties, New Mexico; the Jonah Field located in Sublette County, Wyoming; the Williston Basin situated in Williston, North Dakota; the Barnett Shale field located in North Texas; the Hamilton Dome situated in Hot Springs County, Wyoming; and the Delhi Field, an onshore CO2-EOR project located in northeast Louisiana in Franklin, Madison, and Richland Parishes, as well as small overriding royalty interests in four onshore central Texas wells. The company was founded in 2003 and is based in Houston, Texas.

About SandRidge Energy

SandRidge Energy, Inc. is an oil and natural gas company. The Company focuses on exploration and production activities in the Mid-Continent and Rockies regions of the United States. As of December 31, 2016, the Company had 3,122 gross producing wells and approximately 1,364,000 gross total acres under lease. The Company’s primary areas of operation are the Mid-Continent area of Oklahoma and Kansas and the Niobrara Shale in the Colorado Rockies. As of December 31, 2016, the Company held interests in approximately 1,185,000 gross leasehold acres located primarily in Oklahoma and Kansas. As of December 31, 2016, the Company’s interests in the Mid-Continent included 1,972 gross producing wells. As of December 31, 2016, the Company had approximately 1,087,000 gross acres under lease and 1,471 gross producing wells in the Mississippian formation. As of December 31, 2016, the Company’s Rockies properties consisted of approximately 140,000 gross acres and 25 gross producing wells.