Reviewing Chaparral Energy (NYSE:CHAP) & SilverBow Resources (NYSE:SBOW)

Chaparral Energy (NYSE:CHAP) and SilverBow Resources (NYSE:SBOW) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Profitability

This table compares Chaparral Energy and SilverBow Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chaparral Energy -153.15% 4.63% 2.29%
SilverBow Resources 34.36% 26.09% 10.61%

Analyst Recommendations

This is a summary of recent recommendations for Chaparral Energy and SilverBow Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chaparral Energy 0 1 1 0 2.50
SilverBow Resources 0 0 1 0 3.00

Chaparral Energy currently has a consensus target price of $6.00, suggesting a potential upside of 1,050.31%. SilverBow Resources has a consensus target price of $7.00, suggesting a potential upside of 70.73%. Given Chaparral Energy’s higher probable upside, equities research analysts clearly believe Chaparral Energy is more favorable than SilverBow Resources.

Institutional and Insider Ownership

83.3% of Chaparral Energy shares are held by institutional investors. Comparatively, 63.8% of SilverBow Resources shares are held by institutional investors. 2.2% of Chaparral Energy shares are held by insiders. Comparatively, 3.3% of SilverBow Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Chaparral Energy has a beta of 2.93, indicating that its stock price is 193% more volatile than the S&P 500. Comparatively, SilverBow Resources has a beta of 2.8, indicating that its stock price is 180% more volatile than the S&P 500.

Valuation and Earnings

This table compares Chaparral Energy and SilverBow Resources’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chaparral Energy $236.35 million 0.11 -$468.95 million $0.45 1.16
SilverBow Resources $288.63 million 0.17 $114.66 million $9.74 0.42

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

Summary

SilverBow Resources beats Chaparral Energy on 10 of the 13 factors compared between the two stocks.

Chaparral Energy Company Profile

Chaparral Energy, Inc. engages in the acquisition, exploration, development, production, and operation of onshore oil and natural gas properties primarily in Oklahoma, the United States. The company sells crude oil, natural gas, and natural gas liquids primarily to refineries and gas processing plant. The company was founded in 1988 and is headquartered in Oklahoma City, Oklahoma.

SilverBow Resources Company Profile

SilverBow Resources, Inc., an energy company, engages in the exploration, development, and production of oil and gas from the Eagle Ford Shale in South Texas. As of December 31, 2018, it had proved reserves of 1,345 MMcfe. The company was formerly known as Swift Energy Company and changed its name to SilverBow Resources, Inc. in May 2017. SilverBow Resources, Inc. was founded in 1979 and is headquartered in Houston, Texas.

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