SandRidge Energy (NYSE: EGN) and Energen (NYSE:EGN) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Insider & Institutional Ownership

15.2% of SandRidge Energy shares are held by institutional investors. Comparatively, 93.3% of Energen shares are held by institutional investors. 3.6% of SandRidge Energy shares are held by insiders. Comparatively, 1.1% of Energen shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

SandRidge Energy has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500. Comparatively, Energen has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
SandRidge Energy -30.00% 3.30% 2.51%
Energen 35.43% 6.83% 4.58%

Analyst Ratings

This is a breakdown of recent ratings and price targets for SandRidge Energy and Energen, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SandRidge Energy 0 1 0 0 2.00
Energen 1 9 13 0 2.52

SandRidge Energy presently has a consensus price target of $25.00, indicating a potential upside of 65.13%. Energen has a consensus price target of $76.47, indicating a potential downside of 0.46%. Given SandRidge Energy’s higher probable upside, research analysts clearly believe SandRidge Energy is more favorable than Energen.

Earnings and Valuation

This table compares SandRidge Energy and Energen’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SandRidge Energy $357.30 million 1.50 $47.06 million $1.61 9.40
Energen $961.04 million 7.79 $306.82 million $0.75 102.44

Energen has higher revenue and earnings than SandRidge Energy. SandRidge Energy is trading at a lower price-to-earnings ratio than Energen, indicating that it is currently the more affordable of the two stocks.

Summary

Energen beats SandRidge Energy on 11 of the 14 factors compared between the two stocks.

About SandRidge Energy

SandRidge Energy, Inc. engages in the exploration, development, and production of oil, natural gas, and natural gas liquids primarily in the Mid-Continent and North Park Basin of the United States. As of December 31, 2017, it had 2,096.8 net producing wells; approximately 643,000 net acres under lease; and two rigs drilling in the Mid-Continent and two rigs drilling in the North Park Basin, as well as total estimated proved reserves of 177.6 million barrels of oil equivalent. The company is headquartered in Oklahoma City, Oklahoma. On May 16, 2016, SandRidge Energy, Inc. and its direct and indirect subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas.

About Energen

Energen Corporation, through its subsidiary, Energen Resources Corporation, engages in the exploration, development, and production of oil, natural gas liquids, and natural gas. The company has operations within the Midland Basin, the Delaware Basin, and the Central Basin Platform areas of the Permian Basin in west Texas and New Mexico. As of December 31, 2017, it had a total proved reserves of 444 million barrel of oil equivalent. The company was founded in 1929 and is headquartered in Birmingham, Alabama.

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