Head to Head Review: Carrizo Oil & Gas (CRZO) and Whiting Petroleum (NYSE:WLL)

Carrizo Oil & Gas (NASDAQ: CRZO) and Whiting Petroleum (NYSE:WLL) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Valuation & Earnings

This table compares Carrizo Oil & Gas and Whiting Petroleum’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Carrizo Oil & Gas $443.59 million 3.49 -$675.47 million $1.55 12.26
Whiting Petroleum $1.28 billion 1.68 -$1.34 billion ($7.18) -3.32

Carrizo Oil & Gas has higher earnings, but lower revenue than Whiting Petroleum. Whiting Petroleum is trading at a lower price-to-earnings ratio than Carrizo Oil & Gas, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Carrizo Oil & Gas and Whiting Petroleum, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Carrizo Oil & Gas 0 8 13 0 2.62
Whiting Petroleum 2 14 10 0 2.31

Carrizo Oil & Gas presently has a consensus price target of $31.00, indicating a potential upside of 63.16%. Whiting Petroleum has a consensus price target of $34.76, indicating a potential upside of 45.69%. Given Carrizo Oil & Gas’ stronger consensus rating and higher possible upside, analysts plainly believe Carrizo Oil & Gas is more favorable than Whiting Petroleum.

Risk and Volatility

Carrizo Oil & Gas has a beta of 2.08, meaning that its stock price is 108% more volatile than the S&P 500. Comparatively, Whiting Petroleum has a beta of 3.33, meaning that its stock price is 233% more volatile than the S&P 500.

Profitability

This table compares Carrizo Oil & Gas and Whiting Petroleum’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Carrizo Oil & Gas 16.08% 58.37% 4.45%
Whiting Petroleum -45.39% -5.06% -2.71%

Summary

Carrizo Oil & Gas beats Whiting Petroleum on 10 of the 12 factors compared between the two stocks.

About Carrizo Oil & Gas

Carrizo Oil & Gas, Inc. is an energy company. The Company is engaged in the exploration, development and production of oil and gas from resource plays located in the United States. Its operations are focused in proven, producing oil and gas plays in the Eagle Ford Shale in South Texas, the Delaware Basin in West Texas, the Utica Shale in Ohio, the Niobrara Formation in Colorado, and the Marcellus Shale in Pennsylvania. As of December 31, 2016, the Company’s proved reserves of 200 million barrels of oil equivalent (MMBoe) were 64% crude oil, 12% natural gas liquids (NGLs) and 24% natural gas. As of December 31, 2016, it operated approximately 94% of the wells in Eagle Ford in which it held an interest. As of December 31, 2016, it held an average interest of approximately 85% in these operated wells. As of December 31, 2016, it owned leases covering approximately 309,200 gross (179,179 net) acres in the Eagle Ford, Niobrara, Utica and the Delaware Basin areas.

About Whiting Petroleum

Whiting Petroleum Corporation is an independent oil and gas company. The Company is engaged in development, production, acquisition and exploration activities primarily in the Rocky Mountains region of the United States. It is engaged in the exploration and production of crude oil, natural gas liquid (NGLs) and natural gas. Its Northern Rocky Mountains operations included properties in the Williston Basin of North Dakota and Montana targeting the Bakken and Three Forks formations and encompassing approximately 736,000 gross developed and undeveloped acres, as of December 31, 2016. Its Central Rocky Mountains operations included properties at its Redtail field in the Denver Julesburg Basin in Weld County, Colorado targeting the Niobrara and Codell/Fort Hays formations and encompassing approximately 157,200 gross developed and undeveloped acres, as of December 31, 2016. Its other operations primarily relate to non-core assets in Colorado, Mississippi, North Dakota, Texas and Wyoming.

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