Alta Mesa Resources (NASDAQ:AMR) and Trinity Merger (NASDAQ:TMCX) are both small-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.

Analyst Recommendations

This is a summary of recent ratings and target prices for Alta Mesa Resources and Trinity Merger, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alta Mesa Resources 1 2 0 0 1.67
Trinity Merger 0 0 0 0 N/A

Alta Mesa Resources presently has a consensus target price of $6.25, suggesting a potential upside of 8,828.57%. Given Alta Mesa Resources’ higher probable upside, equities research analysts clearly believe Alta Mesa Resources is more favorable than Trinity Merger.

Profitability

This table compares Alta Mesa Resources and Trinity Merger’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alta Mesa Resources -276.83% -124.33% -91.15%
Trinity Merger N/A 1.20% 1.15%

Volatility & Risk

Alta Mesa Resources has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, Trinity Merger has a beta of 0.01, indicating that its stock price is 99% less volatile than the S&P 500.

Earnings and Valuation

This table compares Alta Mesa Resources and Trinity Merger’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alta Mesa Resources $515.62 million 0.05 -$1.54 billion N/A N/A
Trinity Merger N/A N/A $3.14 million N/A N/A

Trinity Merger has lower revenue, but higher earnings than Alta Mesa Resources.

Insider & Institutional Ownership

47.6% of Alta Mesa Resources shares are held by institutional investors. Comparatively, 76.3% of Trinity Merger shares are held by institutional investors. 0.2% of Alta Mesa Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Trinity Merger beats Alta Mesa Resources on 5 of the 9 factors compared between the two stocks.

About Alta Mesa Resources

Alta Mesa Resources, Inc. focuses on the acquisition and development of unconventional oil and natural gas reserves in the Anadarko Basin. It also offers midstream energy services, including crude oil and gas gathering, processing, and marketing to producers of natural gas, natural gas liquids, crude oil, and condensate in the STACK Play region of Oklahoma. The company was formerly known as Silver Run Acquisition Corporation II and changed its name to Alta Mesa Resources, Inc. in February 2018. Alta Mesa Resources, Inc. was founded in 1987 and is based in Houston, Texas.

About Trinity Merger

Trinity Merger Corp. develops, owns, and manages various branded hotels in the United Kingdom. It also invests in various commercial and residential units. The company was founded in 2018 and is based in Honolulu, Hawaii.

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