SandRidge Energy (NYSE: SD) and Ring Energy (NYSE:REI) are both small-cap oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, earnings, profitability, dividends, valuation and analyst recommendations.

Institutional & Insider Ownership

70.9% of SandRidge Energy shares are held by institutional investors. 3.6% of SandRidge Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares SandRidge Energy and Ring Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SandRidge Energy N/A N/A N/A
Ring Energy N/A N/A N/A

Valuation & Earnings

This table compares SandRidge Energy and Ring Energy’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SandRidge Energy $374.96 million 1.79 $226.66 million N/A N/A
Ring Energy $42.26 million 16.58 $21.77 million N/A N/A

SandRidge Energy has higher revenue and earnings than Ring Energy.

Analyst Ratings

This is a summary of current recommendations and price targets for SandRidge Energy and Ring Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SandRidge Energy 0 1 1 0 2.50
Ring Energy 0 0 6 0 3.00

SandRidge Energy currently has a consensus target price of $21.00, suggesting a potential upside of 7.14%. Ring Energy has a consensus target price of $18.60, suggesting a potential upside of 43.74%. Given Ring Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Ring Energy is more favorable than SandRidge Energy.

SandRidge Energy Company Profile

SandRidge Energy, Inc. is an oil and natural gas company. The Company is engaged in the exploration, development and production of crude oil, natural gas and natural gas liquids. It operates through two segments: exploration and production, which is engaged in the exploration and production of oil and natural gas properties and includes its proportionate share of the activities of the SandRidge Mississippian Trust I, SandRidge Mississippian Trust II and SandRidge Permian Trust (the Royalty Trusts), and midstream services, which coordinates the delivery of electricity to its exploration and production operations in the Mid-Continent. It focuses on exploration and production activities in the Mid-Continent and Rockies regions of the United States. It owns and operates additional interests in west Texas. It also operates businesses and infrastructure systems, including a saltwater gathering and disposal system, and an electrical transmission system.

Ring Energy Company Profile

Ring Energy, Inc. acquires, explores for, develops, and produces oil and natural gas in Texas and Kansas, the United States. As of December 31, 2016, its proved reserves consisted of approximately 27.7 million barrel of oil equivalent. The company also owns interests in 32,663 net developed and undeveloped acres in Andrews and Gaines counties, and 20,490 net developed and undeveloped acres in Reeves and Culberson counties, Texas; and 14,549 net developed and undeveloped acres in Kansas. It primarily sells its oil and natural gas production to end users, marketers, and other purchasers. The company was formerly known as Transglobal Mining Corp. and changed its name to Ring Energy, Inc. in March 2008. Ring Energy, Inc. was founded in 2004 and is headquartered in Midland, Texas.

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