Analyzing Amplify Energy (NYSE:AMPY) & SandRidge Energy (NYSE:SD)

SandRidge Energy (NYSE:SD) and Amplify Energy (NYSE:AMPY) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Valuation and Earnings

This table compares SandRidge Energy and Amplify Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SandRidge Energy	$148.64 million	2.94	$60.86 million	$1.28	9.16
Amplify Energy	$307.60 million	0.87	$392.75 million	$1.54	4.36

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

Insider and Institutional Ownership

61.8% of SandRidge Energy shares are owned by institutional investors. Comparatively, 42.8% of Amplify Energy shares are owned by institutional investors. 1.2% of SandRidge Energy shares are owned by insiders. Comparatively, 2.0% of Amplify Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for SandRidge Energy and Amplify Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SandRidge Energy	0	0	0	0	0.00
Amplify Energy	0	0	3	0	3.00

Amplify Energy has a consensus target price of $10.00, indicating a potential upside of 49.03%. Given Amplify Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Amplify Energy is more favorable than SandRidge Energy.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SandRidge Energy	39.25%	7.92%	6.34%
Amplify Energy	20.99%	16.22%	8.79%

Volatility & Risk

SandRidge Energy has a beta of 2.1, meaning that its stock price is 110% more volatile than the S&P 500. Comparatively, Amplify Energy has a beta of 1.93, meaning that its stock price is 93% more volatile than the S&P 500.

Summary

Amplify Energy beats SandRidge Energy on 9 of the 14 factors compared between the two stocks.

About SandRidge Energy

SandRidge Energy, Inc. engages in the acquisition, development, and production of oil, natural gas, and natural gas liquids in the United States Mid-Continent. The company was incorporated in 2006 and is headquartered in Oklahoma City, Oklahoma.

About Amplify Energy

Amplify Energy Corp., together with its subsidiaries, engages in the acquisition, development, exploitation, and production of oil and natural gas properties in the United States. The company’s properties consist of operated and non-operated working interests in producing and undeveloped leasehold acreage, as well as working interests in identified producing wells located in Oklahoma, the Rockies, federal waters offshore Southern California, East Texas/North Louisiana, and Eagle Ford. The company is based in Houston, Texas.