Head-To-Head Survey: Athlon Energy (ATHL) & Callon Petroleum (CPE)

Athlon Energy (NYSE: ATHL) and Callon Petroleum (NYSE:CPE) are both mid-cap oil & gas exploration and production – nec companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, analyst recommendations, institutional ownership, earnings, dividends and risk.

Earnings and Valuation

This table compares Athlon Energy and Callon Petroleum’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Athlon Energy N/A N/A N/A $0.57 102.61
Callon Petroleum $200.85 million 11.39 -$91.81 million $0.43 26.35

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

Analyst Recommendations

This is a breakdown of current recommendations for Athlon Energy and Callon Petroleum, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Athlon Energy 0 0 0 0 N/A
Callon Petroleum 0 4 19 0 2.83

Callon Petroleum has a consensus price target of $16.64, suggesting a potential upside of 46.83%. Given Callon Petroleum’s higher probable upside, analysts plainly believe Callon Petroleum is more favorable than Athlon Energy.

Profitability

This table compares Athlon Energy and Callon Petroleum’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Athlon Energy N/A N/A N/A
Callon Petroleum 30.20% 4.05% 2.96%

Summary

Callon Petroleum beats Athlon Energy on 6 of the 8 factors compared between the two stocks.

About Athlon Energy

Athlon Energy Inc., is an independent exploration and production company. The Company is a holding company and its sole assets are controlling equity interests in Athlon Holdings LP and its subsidiaries. The Company is focused on the acquisition, development and exploitation of unconventional oil and liquids-rich natural gas reserves in the Permian Basin. The Permian Basin spans portions of Texas and New Mexico and consists of three primary sub-basins: the Delaware Basin, the Central Basin Platform and the Midland Basin. The Company’s properties are located in the Midland Basin. In February 2014, Athlon Energy Inc announced that subsidiary, Athlon Holdings LP completed the acquisition of certain oil and natural gas properties and related assets in the Midland Basin of West Texas.

About Callon Petroleum

Callon Petroleum Company is an independent oil and natural gas company. The Company is engaged in the exploration, development, acquisition and production of oil and natural gas properties. The Company focuses on the acquisition and development of unconventional oil and natural gas reserves in the Permian Basin. The Permian Basin is located in West Texas and southeastern New Mexico and consisted of three primary sub-basins: the Midland Basin, the Delaware Basin, and the Central Basin Platform as of December 31, 2016. The Company’s drilling activity focuses on the horizontal development of various prospective intervals in the Midland Basin, including multiple levels of the Wolfcamp formation and the Lower Spraberry shale. It owns additional immaterial properties in Louisiana. As of December 31, 2016, the Company had owned leaseholds in 39,570 net acres in the Permian Basin, all of which was located in the Midland Basin.

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