PDC Energy (NASDAQ: PDCE) and Comstock Resources (NYSE:CRK) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.
Risk & Volatility
PDC Energy has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, Comstock Resources has a beta of 0.03, meaning that its stock price is 97% less volatile than the S&P 500.
This table compares PDC Energy and Comstock Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
44.2% of Comstock Resources shares are held by institutional investors. 0.9% of PDC Energy shares are held by insiders. Comparatively, 11.6% of Comstock Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a summary of recent ratings and recommmendations for PDC Energy and Comstock Resources, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PDC Energy presently has a consensus target price of $67.00, suggesting a potential upside of 25.23%. Comstock Resources has a consensus target price of $10.00, suggesting a potential upside of 26.42%. Given Comstock Resources’ higher probable upside, analysts clearly believe Comstock Resources is more favorable than PDC Energy.
Earnings & Valuation
This table compares PDC 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|
|PDC Energy||$921.62 million||3.83||-$127.50 million||($1.95)||-27.44|
|Comstock Resources||$255.33 million||0.50||-$111.40 million||($8.88)||-0.89|
Comstock Resources has lower revenue, but higher earnings than PDC Energy. PDC Energy is trading at a lower price-to-earnings ratio than Comstock Resources, indicating that it is currently the more affordable of the two stocks.
PDC Energy beats Comstock Resources on 9 of the 14 factors compared between the two stocks.
About PDC Energy
PDC Energy, Inc. is an independent exploration and production company. The Company produces, develops, acquires and explores for crude oil, natural gas and natural gas liquids (NGLs) with operations in the Wattenberg Field in Colorado and the Utica Shale in southeastern Ohio. The Company operates through two segments: Oil and Gas Exploration and Production, and Gas Marketing. The Company’s Oil and Gas Exploration and Production segment includes all of its crude oil and natural gas properties. The Company’s Gas Marketing segment purchases, aggregates and resells natural gas. The Company’s operations in the Wattenberg Field are focused on the horizontal Niobrara and Codell plays. Its Delaware Basin operations are focused in the Wolfcamp zones and its Ohio operations are focused in the Utica Shale play. As of December 31, 2016, the Company owned an interest in approximately 2,900 productive gross wells.
About Comstock Resources
Comstock Resources, Inc. is an energy company engaged in the acquisition, exploration, development and production of oil and natural gas in the United States. The Company operates in the segment of exploration and production of oil and natural gas. The Company’s oil and gas operations are concentrated in Texas and Louisiana. Its operations are focused in two operating areas: East Texas/North Louisiana and South Texas. The Company’s properties in the East Texas/North Louisiana region include approximately 80,660 acres in the Haynesville or Bossier shale formations. The Company’s Eagleville field includes approximately 30,220 acres located in the oil window of the Eagle Ford shale in South Texas. The Company owns interests in over 1,575 producing oil and natural gas wells, and operates over 950 of these wells. The Company owns interests in over 20 wells in the Rosita field, located in Duval County, Texas.
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