Head-To-Head Analysis: Sanchez Energy (OTCMKTS:SNEC) versus Extraction Oil & Gas (OTCMKTS:XOGAQ)

Sanchez Energy (OTCMKTS:SNEC) and Extraction Oil & Gas (OTCMKTS:XOGAQ) are both small-cap oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Insider and Institutional Ownership

0.6% of Sanchez Energy shares are owned by institutional investors. Comparatively, 38.6% of Extraction Oil & Gas shares are owned by institutional investors. 11.1% of Sanchez Energy shares are owned by insiders. Comparatively, 6.0% of Extraction Oil & Gas shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Sanchez Energy and Extraction Oil & Gas”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sanchez Energy	$1.06 billion	0.00	$85.21 million	N/A	N/A
Extraction Oil & Gas	$906.64 million	0.01	-$1.39 billion	($0.46)	-0.13

Sanchez Energy has higher revenue and earnings than Extraction Oil & Gas.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Sanchez Energy and Extraction Oil & Gas, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sanchez Energy	0	0	0	0	N/A
Extraction Oil & Gas	0	0	0	0	N/A

Profitability

This table compares Sanchez Energy and Extraction Oil & Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sanchez Energy	2.22%	-18.15%	3.09%
Extraction Oil & Gas	-223.86%	-56.20%	-11.52%

Risk and Volatility

Sanchez Energy has a beta of 1.71, suggesting that its stock price is 71% more volatile than the S&P 500. Comparatively, Extraction Oil & Gas has a beta of 2.1, suggesting that its stock price is 110% more volatile than the S&P 500.

Summary

Sanchez Energy beats Extraction Oil & Gas on 6 of the 8 factors compared between the two stocks.

About Sanchez Energy

Sanchez Energy Corporation, an independent exploration and production company, focuses on the acquisition and development of onshore unconventional oil and natural gas resources in the United States. It engages in the horizontal development of resources from the Eagle Ford Shale in South Texas. It also holds an undeveloped acreage position in the Tuscaloosa Marine Shale (TMS) in Mississippi and Louisiana. As of December 31, 2018, the company had assembled approximately 271,000 net acres in the Eagle Ford Shale; and owned approximately 34,000 net acres in the TMS. Sanchez Energy Corporation was founded in 2011 and is headquartered in Houston, Texas.

About Extraction Oil & Gas

Extraction Oil & Gas, Inc., an independent oil and gas company, focuses on the acquisition, development, and production of oil, natural gas, and natural gas liquid reserves in the Rocky Mountain region, primarily in the Wattenberg Field of the Denver-Julesburg (DJ) Basin of Colorado. The company also engages in the construction and support of midstream assets to gather, process, and produce crude oil and gas. As of December 31, 2019, it had approximately 169,900 net acres of contiguous acreage blocks in the productive areas of the DJ Basin; held approximately 125,500 net acres outside of the Core DJ Basin; had estimated proved reserves of approximately 254.1 MMBoe; and had 1,509 gross producing wells. The company was founded in 2012 and is headquartered in Denver, Colorado. On June 14, 2020, Extraction Oil & Gas, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.