Critical Survey: Anadarko Petroleum (NASDAQ:APC) vs. Atlas Energy Group (OTCMKTS:ATLS)

Atlas Energy Group (OTCMKTS:ATLS) and Anadarko Petroleum (NASDAQ:APC) are both small-cap energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Atlas Energy Group and Anadarko Petroleum, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlas Energy Group	0	0	0	0	0.00
Anadarko Petroleum	0	1	3	2	3.17

Anadarko Petroleum has a consensus price target of $21.60, suggesting a potential upside of 4.80%. Given Anadarko Petroleum’s stronger consensus rating and higher probable upside, analysts clearly believe Anadarko Petroleum is more favorable than Atlas Energy Group.

Profitability

This table compares Atlas Energy Group and Anadarko Petroleum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atlas Energy Group	N/A	N/A	N/A
Anadarko Petroleum	-4.20%	10.49%	2.68%

Earnings & Valuation

This table compares Atlas Energy Group and Anadarko Petroleum”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlas Energy Group	N/A	N/A	N/A	N/A	N/A
Anadarko Petroleum	$5.58 billion	0.05	$615.00 million	$0.43	47.93

Anadarko Petroleum has higher revenue and earnings than Atlas Energy Group.

Volatility and Risk

Atlas Energy Group has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500. Comparatively, Anadarko Petroleum has a beta of 1.64, indicating that its share price is 64% more volatile than the S&P 500.

Institutional & Insider Ownership

85.2% of Anadarko Petroleum shares are owned by institutional investors. 12.4% of Atlas Energy Group shares are owned by insiders. Comparatively, 0.5% of Anadarko Petroleum shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Anadarko Petroleum beats Atlas Energy Group on 9 of the 11 factors compared between the two stocks.

About Atlas Energy Group

Atlas Energy Group, LLC, through its subsidiaries, develops and produces natural gas, crude oil, and natural gas liquids in the United States. The company has interests in the Eagle Ford Shale in southern Texas; the Marble Falls play in the Fort Worth Basin in northern Texas; and the Mississippi Lime play in northwestern Oklahoma. It also focuses on investing in master limited partnership qualifying energy-related businesses and assets. The company was founded in 2011 and is based in Fort Worth, Texas.

About Anadarko Petroleum

Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of oil and gas properties. It operates through three segments: Exploration and Production, WES Midstream, and Other Midstream. The company explores for and produces oil, natural gas, and natural gas liquids (NGLs). It is also involved in gathering, processing, treating, and transporting oil, natural-gas, and NGLs production, as well as the gathering and disposal of produced water. The company's oil and natural gas properties are located in the United States onshore and deepwater Gulf of Mexico; and Algeria, Ghana, Mozambique, Colombia, Peru, and other countries. As of December 31, 2018, it had approximately 1.5 billion barrels of oil equivalent of proved reserves. The company was founded in 1959 and is headquartered in The Woodlands, Texas.