Crescent Point Energy Corporation (NYSE: CPG) and Atlas Resource Partners, L.P. (NYSE:ARP) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.
This is a summary of current recommendations and price targets for Crescent Point Energy Corporation and Atlas Resource Partners, L.P., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Crescent Point Energy Corporation||0||2||4||0||2.67|
|Atlas Resource Partners, L.P.||0||0||0||0||N/A|
Crescent Point Energy Corporation presently has a consensus target price of $15.50, indicating a potential upside of 105.84%. Given Crescent Point Energy Corporation’s higher probable upside, equities analysts clearly believe Crescent Point Energy Corporation is more favorable than Atlas Resource Partners, L.P..
Earnings & Valuation
This table compares Crescent Point Energy Corporation and Atlas Resource Partners, L.P.’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Crescent Point Energy Corporation||$2.12 billion||1.94||$1.31 billion||($0.58)||-12.98|
|Atlas Resource Partners, L.P.||N/A||N/A||N/A||($9.00)||-0.04|
Crescent Point Energy Corporation has higher revenue and earnings than Atlas Resource Partners, L.P.. Crescent Point Energy Corporation is trading at a lower price-to-earnings ratio than Atlas Resource Partners, L.P., indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Crescent Point Energy Corporation has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500. Comparatively, Atlas Resource Partners, L.P. has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.
This table compares Crescent Point Energy Corporation and Atlas Resource Partners, L.P.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Crescent Point Energy Corporation||-13.80%||1.83%||1.08%|
|Atlas Resource Partners, L.P.||N/A||N/A||-35.27%|
Institutional & Insider Ownership
39.0% of Crescent Point Energy Corporation shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Crescent Point Energy Corporation pays an annual dividend of $0.30 per share and has a dividend yield of 4.0%. Atlas Resource Partners, L.P. pays an annual dividend of $0.50 per share and has a dividend yield of 157.2%. Crescent Point Energy Corporation pays out -51.7% of its earnings in the form of a dividend. Atlas Resource Partners, L.P. pays out -5.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Atlas Resource Partners, L.P. has increased its dividend for 5 consecutive years. Atlas Resource Partners, L.P. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Crescent Point Energy Corporation beats Atlas Resource Partners, L.P. on 9 of the 12 factors compared between the two stocks.
About Crescent Point Energy Corporation
Crescent Point Energy Corp. acquires, explores, develops, and produces light and medium oil and natural gas properties in Western Canada and the United States. The company's crude oil and natural gas properties, and related assets are located in the provinces of Saskatchewan, Alberta, British Columbia, and Manitoba; and the states of North Dakota, Montana, Colorado, and Utah. Crescent Point Energy Corp. is headquartered in Calgary, Canada.
About Atlas Resource Partners, L.P.
Atlas Resource Partners, L.P. is an independent developer and producer of natural gas, crude oil and natural gas liquids (NGL), with operations in basins across the United States. The Company is a sponsor and manager of tax-advantaged investment partnerships (drilling partnerships), in which it co-invests, to finance a portion of its natural gas, crude oil and natural gas liquids production activities. The Company operates through three segments: gas and oil production, well construction and completion, and other partnership management. Its production positions are in the areas, including Barnett Shale/Marble Falls, Appalachian Basin, Coal-Bed Methane, Rangely, Eagle Ford, Mississippi Lime/Hunton and Chattanooga Shale. The Barnett Shale and Marble Falls play are located east of the Bend Arch and west of the Quachita Thrust in the Fort Worth Basin of northern Texas. It has various coal-bed methane developments across coal-bed methane producing areas.
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