Bonanza Creek Energy (NYSE: BCEI) and Triangle Petroleum (OTCMKTS:TPLM) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Volatility and Risk

Bonanza Creek Energy has a beta of 1.91, indicating that its share price is 91% more volatile than the S&P 500. Comparatively, Triangle Petroleum has a beta of 2.04, indicating that its share price is 104% more volatile than the S&P 500.

Insider & Institutional Ownership

91.2% of Bonanza Creek Energy shares are held by institutional investors. Comparatively, 0.2% of Triangle Petroleum shares are held by institutional investors. 0.6% of Bonanza Creek Energy shares are held by insiders. Comparatively, 7.3% of Triangle Petroleum 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.

Analyst Recommendations

This is a summary of current recommendations for Bonanza Creek Energy and Triangle Petroleum, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bonanza Creek Energy 0 3 0 0 2.00
Triangle Petroleum 0 0 0 0 N/A

Bonanza Creek Energy presently has a consensus price target of $25.00, indicating a potential downside of 2.87%. Given Bonanza Creek Energy’s higher possible upside, equities research analysts clearly believe Bonanza Creek Energy is more favorable than Triangle Petroleum.

Earnings and Valuation

This table compares Bonanza Creek Energy and Triangle Petroleum’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bonanza Creek Energy $195.29 million 2.70 -$198.95 million ($153.96) -0.17
Triangle Petroleum $358.13 million 0.01 -$822.34 million ($0.46) -0.07

Bonanza Creek Energy has higher earnings, but lower revenue than Triangle Petroleum. Bonanza Creek Energy is trading at a lower price-to-earnings ratio than Triangle Petroleum, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Bonanza Creek Energy and Triangle Petroleum’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bonanza Creek Energy -33.79% -3.17% -1.09%
Triangle Petroleum N/A N/A N/A

Summary

Triangle Petroleum beats Bonanza Creek Energy on 7 of the 11 factors compared between the two stocks.

About Bonanza Creek Energy

Bonanza Creek Energy, Inc. (Bonanza Creek) is an independent energy company engaged in the acquisition, exploration, development and production of onshore oil and associated liquids-rich natural gas in the United States. The Company’s oil and liquids-weighted assets are concentrated primarily in the Wattenberg Field in Colorado and the Dorcheat Macedonia Field in southern Arkansas. In addition, the Company owns and operates oil-producing assets in the North Park Basin in Colorado and the McKamie Patton Field in southern Arkansas. The main areas in which the Company operates in the Rocky Mountain region are the Wattenberg Field in Weld County, Colorado and the North Park Basin in Jackson County, Colorado. Its Wattenberg Field operations are in the oil and liquids-weighted extension area of the Wattenberg Field targeting the Niobrara and Codell formations. In southern Arkansas, it targets the oil-rich Cotton Valley sands in the Dorcheat Macedonia and McKamie Patton Fields.

About Triangle Petroleum

Triangle Petroleum Corporation (Triangle) is an energy holding company. The Company operates through two segments: exploration and production segment, and oilfield services segment. The focus of the exploration and production operating segment is finding and producing oil and natural gas. The focus of the oilfield services operating segment is pressure pumping and complementary services for both TUSA-operated wells and third-party-operated wells. The Company has three principal lines of business: oil and natural gas exploration, development and production; oilfield services, and midstream services. It conducts these activities in the Williston Basin of North Dakota and Montana through the Company’s subsidiaries and its equity joint venture. Triangle USA Petroleum Corporation (TUSA), the Company’s subsidiary, conducts its exploration and production operations by acquiring and developing unconventional shale oil and natural gas resources.

Receive News & Ratings for Bonanza Creek Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Bonanza Creek Energy and related companies with MarketBeat.com's FREE daily email newsletter.