Analyzing Enerplus (NYSE:ERF) & Earthstone Energy (NYSE:ESTE)

Enerplus (NYSE:ERFGet Rating) and Earthstone Energy (NYSE:ESTEGet Rating) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Volatility and Risk

Enerplus has a beta of 2.72, suggesting that its stock price is 172% more volatile than the S&P 500. Comparatively, Earthstone Energy has a beta of 2.38, suggesting that its stock price is 138% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Enerplus and Earthstone Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enerplus 0 1 7 0 2.88
Earthstone Energy 1 1 4 0 2.50

Enerplus currently has a consensus target price of $19.69, suggesting a potential upside of 57.25%. Earthstone Energy has a consensus target price of $21.08, suggesting a potential upside of 46.82%. Given Enerplus’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Enerplus is more favorable than Earthstone Energy.

Institutional & Insider Ownership

52.2% of Enerplus shares are held by institutional investors. Comparatively, 82.1% of Earthstone Energy shares are held by institutional investors. 49.6% of Earthstone Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Enerplus and Earthstone Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enerplus 16.32% 53.28% 14.21%
Earthstone Energy 8.46% 11.26% 7.68%

Valuation & Earnings

This table compares Enerplus and Earthstone Energy’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enerplus $963.90 million 3.14 $234.44 million $0.74 16.92
Earthstone Energy $419.64 million 3.00 $35.48 million $0.58 24.76

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

Summary

Enerplus beats Earthstone Energy on 11 of the 14 factors compared between the two stocks.

Enerplus Company Profile (Get Rating)

Enerplus Corporation, together with subsidiaries, engages in the exploration and development of crude oil and natural gas in the United States and Canada. The company's oil and natural gas properties are located primarily in North Dakota, Colorado, and Pennsylvania; and Alberta, British Columbia, and Saskatchewan. As of December 31, 2021, it had proved plus probable gross reserves of approximately 8.2 million barrels (MMbbls) of light and medium crude oil; 20.7 MMbbls of heavy crude oil; 299.3 MMbbls of tight oil; 56.2 MMbbls of natural gas liquids; 19.7 billion cubic feet (Bcf) of conventional natural gas; and 1,367.9 Bcf of shale gas. Enerplus Corporation was founded in 1986 and is headquartered in Calgary, Canada.

Earthstone Energy Company Profile (Get Rating)

Earthstone Energy, Inc., an independent oil and gas company, engages in the acquisition, exploration, development, and production of oil and natural gas properties in the United States. The company's asset portfolio includes the Midland Basin of West Texas, Delaware Basin in New Mexico, and the Eagle Ford trend of south Texas. As of December 31, 2021, it operated 120 gross Eagle Ford wells, as well as had 147,587 thousand barrels of oil equivalent (MBOE) of total proved reserves comprised 93,575 MBOE of proved developed reserves and 54,012 MBOE of proved undeveloped reserves. Earthstone Energy, Inc. was incorporated in 1969 and is headquartered in The Woodlands, Texas.

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