Midstates Petroleum (NYSE: MPO) and SilverBow Resources (NYSE:SBOW) are both small-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.

Profitability

This table compares Midstates Petroleum and SilverBow Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Midstates Petroleum 661.54% 268.49% 199.88%
SilverBow Resources 23.27% 30.10% 9.06%

Earnings and Valuation

This table compares Midstates Petroleum and SilverBow Resources’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Midstates Petroleum $241.75 million 1.82 $1.33 billion N/A N/A
SilverBow Resources $144.31 million 1.81 $695.32 million N/A N/A

Midstates Petroleum has higher revenue and earnings than SilverBow Resources.

Analyst Ratings

This is a summary of recent ratings for Midstates Petroleum and SilverBow Resources, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Midstates Petroleum 0 1 0 0 2.00
SilverBow Resources 0 1 3 0 2.75

SilverBow Resources has a consensus price target of $31.67, indicating a potential upside of 39.75%. Given SilverBow Resources’ stronger consensus rating and higher probable upside, analysts clearly believe SilverBow Resources is more favorable than Midstates Petroleum.

Institutional & Insider Ownership

94.3% of Midstates Petroleum shares are held by institutional investors. Comparatively, 29.9% of SilverBow Resources shares are held by institutional investors. 1.9% of Midstates Petroleum shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Midstates Petroleum beats SilverBow Resources on 8 of the 11 factors compared between the two stocks.

About Midstates Petroleum

Midstates Petroleum Company, Inc. is an independent exploration and production company. The Company operates oil and natural gas properties, and is engaged in the exploration, development and production of oil, natural gas liquids (NGLs) and natural gas. It is focused on the application of drilling and completion techniques in oil and basins in the onshore United States. It conducts oil and gas operations, and owns and operates oil and gas properties in Oklahoma, Texas and Louisiana. Its Mississippian Lime assets consist of approximately 69,680 net prospective acres in the Mississippian Lime trend in Woods and Alfalfa Counties of Oklahoma, and approximately 12,160 net acres in Lincoln County, Oklahoma, which produces from, and is prospective in, the Hunton formation. Its Anadarko Basin assets consist of approximately 111,190 net acres in the Anadarko Basin, with over 82,530 net acres in Texas and over 28,650 net acres in western Oklahoma.

About SilverBow Resources

SilverBow Resources is a Houston-based energy company actively engaged in the exploration, development, and production of oil and gas from the Eagle Ford Shale in South Texas. With almost 30 years of history operating in South Texas, the Company possesses a significant understanding of regional reservoirs which they leverage to assemble drilling inventory.

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