Newfield Exploration (NFX) vs. Baytex Energy (BTE) Head-To-Head Review

Baytex Energy (NYSE: BTE) and Newfield Exploration (NYSE:NFX) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Earnings and Valuation

This table compares Baytex Energy and Newfield Exploration’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Baytex Energy $588.99 million 1.32 -$366.41 million ($1.29) -2.55
Newfield Exploration $1.47 billion 4.69 -$1.23 billion $1.73 20.00

Baytex Energy has higher earnings, but lower revenue than Newfield Exploration. Baytex Energy is trading at a lower price-to-earnings ratio than Newfield Exploration, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Baytex Energy and Newfield Exploration’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Baytex Energy -33.43% -3.79% -1.60%
Newfield Exploration 20.62% 35.28% 8.89%

Risk & Volatility

Baytex Energy has a beta of 3.42, suggesting that its share price is 242% more volatile than the S&P 500. Comparatively, Newfield Exploration has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500.

Institutional & Insider Ownership

16.5% of Baytex Energy shares are owned by institutional investors. Comparatively, 99.7% of Newfield Exploration shares are owned by institutional investors. 0.5% of Newfield Exploration shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Baytex Energy and Newfield Exploration, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Baytex Energy 2 3 1 0 1.83
Newfield Exploration 0 8 15 0 2.65

Baytex Energy currently has a consensus price target of $4.25, indicating a potential upside of 29.18%. Newfield Exploration has a consensus price target of $38.90, indicating a potential upside of 12.44%. Given Baytex Energy’s higher possible upside, equities analysts plainly believe Baytex Energy is more favorable than Newfield Exploration.

Summary

Newfield Exploration beats Baytex Energy on 11 of the 14 factors compared between the two stocks.

About Baytex Energy

Baytex Energy Corp. (Baytex) is engaged in the business of acquiring, developing, exploiting and holding interests in petroleum and natural gas properties and related assets in Canada (Alberta and Saskatchewan) and in the United States (Texas). The Company’s crude oil and natural gas operations are organized into four business units: Lloydminster, Peace River, Conventional and United States. Each business unit has a portfolio of mineral leases, operated and non-operated properties and development prospects. The Company’s subsidiaries include Baytex Energy Ltd. and Baytex Energy USA, Inc. Baytex Energy Ltd. is engaged in the business of oil and natural gas exploration, exploitation, development, acquisition and production in Canada. Baytex Energy USA, Inc. is engaged in the business of oil and natural gas exploration, exploitation, development, acquisition and production in the United States. It holds all of the operating assets in the United States.

About Newfield Exploration

Newfield Exploration Company is an independent exploration and production company. It is engaged in the exploration, development and production of crude oil, natural gas and natural gas liquids. Its operating segments are the United States and China. Its the United States operations are onshore and focus primarily on large scale, liquids resource plays. Its principal areas of operation are the Anadarko and Arkoma basins of Oklahoma, the Williston Basin of North Dakota and the Uinta Basin of Utah. It has oil producing assets offshore China. As of December 31, 2016, its proved reserves of 513 million barrels of oil equivalents (MMBOE) consisted of 304 MMBOE proved developed producing, 10 MMBOE proved developed non-producing and 199 MMBOE proved undeveloped reserves. As of December 31, 2016, its proved liquids reserves were 285 million barrels of crude oil or other liquid hydrocarbons. As of December 31, 2016, 67% of its proved liquids reserves were crude oil or condensate.

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