Bonanza Creek Energy (NYSE: BCEI) and Concho Resources (NYSE:CXO) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

Volatility & Risk

Bonanza Creek Energy has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500. Comparatively, Concho Resources has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Valuation & Earnings

This table compares Bonanza Creek Energy and Concho Resources’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bonanza Creek Energy $192.12 million 3.46 -$2.36 million N/A N/A
Concho Resources $2.59 billion 7.94 $956.00 million $2.09 65.90

Concho Resources has higher revenue and earnings than Bonanza Creek Energy.

Analyst Ratings

This is a summary of recent recommendations for Bonanza Creek Energy and Concho Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bonanza Creek Energy 0 2 2 0 2.50
Concho Resources 0 6 19 0 2.76

Bonanza Creek Energy currently has a consensus price target of $41.67, indicating a potential upside of 28.68%. Concho Resources has a consensus price target of $177.09, indicating a potential upside of 28.58%. Given Bonanza Creek Energy’s higher possible upside, equities research analysts clearly believe Bonanza Creek Energy is more favorable than Concho Resources.

Institutional and Insider Ownership

97.4% of Concho Resources shares are owned by institutional investors. 0.9% of Bonanza Creek Energy shares are owned by insiders. Comparatively, 1.1% of Concho Resources shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Bonanza Creek Energy and Concho Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bonanza Creek Energy 7.47% 9.78% 8.14%
Concho Resources 34.13% 5.37% 3.54%

Summary

Concho Resources beats Bonanza Creek Energy on 9 of the 13 factors compared between the two stocks.

Bonanza Creek Energy Company Profile

Bonanza Creek Energy, Inc. engages in the exploration, development, and production of onshore oil and related liquids-rich natural gas in the United States. The company's oil and liquids-weighted assets are located primarily in the Wattenberg Field in Colorado; and the Dorcheat Macedonia Field in southern Arkansas. It also owns and operates oil-producing assets in the McKamie Patton Field in southern Arkansas. As of December 31, 2017, the company had proved reserves of 102.0 MMBoe. Bonanza Creek Energy, Inc. was founded in 2010 and is headquartered in Denver, Colorado.

Concho Resources Company Profile

Concho Resources Inc., an independent oil and natural gas company, engages in the acquisition, development, and exploration of oil and natural gas properties in the United States. The company's principal operating areas are located in the Permian Basin of southeast New Mexico and west Texas. As of December 31, 2017, its total estimated proved reserves were 840 million barrels of oil equivalent. Concho Resources Inc. was founded in 2006 and is headquartered in Midland, Texas.

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