Analyzing Enerplus (ERF) and Torchlight Energy Resources (TRCH)
Enerplus (NYSE:ERF) and Torchlight Energy Resources (NASDAQ:TRCH) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.
Risk & Volatility
Enerplus has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, Torchlight Energy Resources has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for Enerplus and Torchlight Energy Resources, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Torchlight Energy Resources||0||0||2||0||3.00|
Enerplus presently has a consensus price target of $20.25, indicating a potential upside of 141.65%. Torchlight Energy Resources has a consensus price target of $1.60, indicating a potential upside of 2.56%. Given Enerplus’ higher probable upside, equities analysts plainly believe Enerplus is more favorable than Torchlight Energy Resources.
Enerplus pays an annual dividend of $0.09 per share and has a dividend yield of 1.1%. Torchlight Energy Resources does not pay a dividend. Enerplus pays out 8.3% of its earnings in the form of a dividend.
This table compares Enerplus and Torchlight Energy Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Torchlight Energy Resources||-146.68%||-11.94%||-6.33%|
Insider & Institutional Ownership
56.2% of Enerplus shares are owned by institutional investors. Comparatively, 7.9% of Torchlight Energy Resources shares are owned by institutional investors. 29.3% of Torchlight Energy Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Enerplus and Torchlight Energy Resources’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Enerplus||$997.46 million||2.01||$291.88 million||$1.09||7.69|
|Torchlight Energy Resources||$570,000.00||191.89||-$910,000.00||N/A||N/A|
Enerplus has higher revenue and earnings than Torchlight Energy Resources.
Enerplus beats Torchlight Energy Resources on 8 of the 13 factors compared between the two stocks.
Enerplus Corporation, together with subsidiaries, engages in the exploration and development of crude oil and natural gas in the United States and Canada. Its crude oil properties are located in the Fort Berthold region of North Dakota and the Elm Coulee field in Richland County, Montana; and crude oil Waterfloods in Alberta and Saskatchewan, Canada. The company's natural gas area primarily consists of its non-operated Marcellus shale gas interests located in northeastern Pennsylvania. Enerplus Corporation was founded in 1986 and is headquartered in Calgary, Canada.
About Torchlight Energy Resources
Torchlight Energy Resources, Inc., through its subsidiaries, engages in the acquisition, exploration, exploitation, and/or development of oil and natural gas properties in the United States. As of December 31, 2017 it had interests in four oil and gas projects, including the Orogrande project in Hudspeth County, Texas; Hazel project in Sterling, Tom Green, and Irion Counties, Texas; Winkler project in Winkler County, Texas; and Hunton wells in partnership with Husky Ventures in Central Oklahoma. The company was founded in 2010 and is based in Plano, Texas.
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