Denbury Resources (NYSE:DNR) and Sanchez Energy (OTCMKTS:SNEC) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.
Risk & Volatility
Denbury Resources has a beta of 3.37, indicating that its share price is 237% more volatile than the S&P 500. Comparatively, Sanchez Energy has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500.
This table compares Denbury Resources and Sanchez Energy’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Denbury Resources||$1.47 billion||0.35||$322.70 million||$0.48||2.31|
|Sanchez Energy||$1.06 billion||0.01||$85.21 million||N/A||N/A|
Denbury Resources has higher revenue and earnings than Sanchez Energy.
Insider & Institutional Ownership
80.1% of Denbury Resources shares are held by institutional investors. Comparatively, 0.7% of Sanchez Energy shares are held by institutional investors. 1.2% of Denbury Resources shares are held by insiders. Comparatively, 11.1% of Sanchez Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a breakdown of current ratings and price targets for Denbury Resources and Sanchez Energy, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Denbury Resources presently has a consensus target price of $4.43, indicating a potential upside of 299.40%. Given Denbury Resources’ higher probable upside, equities analysts plainly believe Denbury Resources is more favorable than Sanchez Energy.
This table compares Denbury Resources and Sanchez Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Denbury Resources beats Sanchez Energy on 9 of the 10 factors compared between the two stocks.
About Denbury Resources
Denbury Resources Inc. operates as an independent oil and natural gas company in the United States. It holds interests in various oil and natural gas properties located in Mississippi, Texas, Louisiana, and Alabama in the Gulf Coast region; and in Montana, North Dakota, and Wyoming in the Rocky Mountain region. As of December 31, 2018, the company had 262 million barrels of oil equivalent of estimated proved oil and natural gas reserves, including 255 million barrels of crude oil, and condensate and natural gas liquids, as well as 43 billion cubic feet of natural gas. Denbury Resources Inc. was founded in 1951 and is headquartered in Plano, Texas.
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.
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