Financial Analysis: SandRidge Energy (SD) versus Blue Ridge Mountain Resources (MHRCQ)

SandRidge Energy (NYSE: SD) and Blue Ridge Mountain Resources (OTCMKTS:MHRCQ) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for SandRidge Energy and Blue Ridge Mountain Resources, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SandRidge Energy 0 1 1 0 2.50
Blue Ridge Mountain Resources 0 0 0 0 N/A

SandRidge Energy presently has a consensus price target of $21.00, suggesting a potential upside of 14.57%. Given SandRidge Energy’s higher possible upside, research analysts plainly believe SandRidge Energy is more favorable than Blue Ridge Mountain Resources.

Profitability

This table compares SandRidge Energy and Blue Ridge Mountain Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SandRidge Energy -73.96% 9.09% 6.27%
Blue Ridge Mountain Resources -2,141.83% N/A -174.34%

Valuation & Earnings

This table compares SandRidge Energy and Blue Ridge Mountain Resources’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SandRidge Energy $392.26 million 1.67 $1.11 billion N/A N/A
Blue Ridge Mountain Resources N/A N/A N/A ($1.02) 0.00

SandRidge Energy has higher revenue and earnings than Blue Ridge Mountain Resources.

Institutional and Insider Ownership

10.1% of SandRidge Energy shares are held by institutional investors. 3.6% of SandRidge Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

SandRidge Energy beats Blue Ridge Mountain Resources on 8 of the 8 factors compared between the two stocks.

SandRidge Energy Company Profile

SandRidge Energy, Inc. is an oil and natural gas company. The Company is engaged in the exploration, development and production of crude oil, natural gas and natural gas liquids. It operates through two segments: exploration and production, which is engaged in the exploration and production of oil and natural gas properties and includes its proportionate share of the activities of the SandRidge Mississippian Trust I, SandRidge Mississippian Trust II and SandRidge Permian Trust (the Royalty Trusts), and midstream services, which coordinates the delivery of electricity to its exploration and production operations in the Mid-Continent. It focuses on exploration and production activities in the Mid-Continent and Rockies regions of the United States. It owns and operates additional interests in west Texas. It also operates businesses and infrastructure systems, including a saltwater gathering and disposal system, and an electrical transmission system.

Blue Ridge Mountain Resources Company Profile

Blue Ridge Mountain Resources, Inc., formerly Magnum Hunter Resources Corporation, is an independent exploration and production company engaged in the acquisition, development and production of natural gas, natural gas liquids and crude oil, primarily in the states of West Virginia and Ohio. The Company operates through three segments: Upstream, Midstream and Oil Field Services. The Upstream segment is organized and operated to explore for and produce crude oil and natural gas within the geographic boundaries of the United States and Canada. The Midstream segment consists primarily of Eureka Hunter Holdings, LLC (Eureka Midstream Holdings), which markets natural gas and operates a network of pipelines and compression stations that gather natural gas and natural gas liquids (NGLs) in the United States for transportation to market. The Oilfield Services segment provides drilling services to oil and natural gas exploration and production companies.

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