Southwestern Energy (NYSE:SWN) and Comstock Resources (NYSE:CRK) are both small-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, analyst recommendations, valuation, profitability, risk and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Southwestern Energy 26.70% 19.16% 7.85%
Comstock Resources 16.09% 12.24% 3.18%

Risk and Volatility

Southwestern Energy has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Comstock Resources has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500.

Insider and Institutional Ownership

94.6% of Southwestern Energy shares are held by institutional investors. Comparatively, 6.9% of Comstock Resources shares are held by institutional investors. 0.7% of Southwestern Energy shares are held by company insiders. Comparatively, 2.2% of Comstock 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.

Earnings and Valuation

This table compares Southwestern Energy and Comstock Resources’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Southwestern Energy $3.86 billion 0.25 $537.00 million $1.02 1.76
Comstock Resources $390.25 million 2.54 -$28.63 million N/A N/A

Southwestern Energy has higher revenue and earnings than Comstock Resources.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Southwestern Energy and Comstock Resources, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Southwestern Energy 5 7 1 0 1.69
Comstock Resources 0 2 0 0 2.00

Southwestern Energy presently has a consensus target price of $4.32, suggesting a potential upside of 140.17%. Comstock Resources has a consensus target price of $6.50, suggesting a potential upside of 21.27%. Given Southwestern Energy’s higher probable upside, analysts plainly believe Southwestern Energy is more favorable than Comstock Resources.

Summary

Southwestern Energy beats Comstock Resources on 8 of the 12 factors compared between the two stocks.

About Southwestern Energy

Southwestern Energy Company, an independent energy company, engages in the exploration, development, and production of natural gas and oil in the United States. It operates through two segments, Exploration and Production, and Midstream. The company focuses on the development of unconventional natural gas reservoirs located in Pennsylvania and West Virginia. As of December 31, 2018, it had approximately 184,024 net acres in Northeast Appalachia; and approximately 297,445 net acres in Southwest Appalachia. The company's estimated proved natural gas, oil, and NGLs reserves comprise 11,921 billion cubic feet of natural gas equivalent (Bcfe); and 6,364 Bcfe of proved undeveloped reserves. Southwestern Energy Company was founded in 1929 and is headquartered in Spring, Texas.

About Comstock Resources

Comstock Resources, Inc. and its subsidiaries engage in the acquisition, exploration for, development, and production of oil and natural gas properties, primarily in Texas, Louisiana, and North Dakota. The company is headquartered in Frisco, Texas.

Receive News & Ratings for Southwestern Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Southwestern Energy and related companies with MarketBeat.com's FREE daily email newsletter.