Critical Review: NOSTRUM OIL & G/ADR (NSTRY) vs. Apache (APA)

NOSTRUM OIL & G/ADR (OTCMKTS: NSTRY) and Apache (NYSE:APA) are both oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.

Volatility & Risk

NOSTRUM OIL & G/ADR has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Apache has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.

Earnings & Valuation

This table compares NOSTRUM OIL & G/ADR and Apache’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NOSTRUM OIL & G/ADR $405.53 million 1.38 -$23.88 million ($0.52) -22.91
Apache $6.42 billion 2.66 $1.30 billion $0.24 186.17

Apache has higher revenue and earnings than NOSTRUM OIL & G/ADR. NOSTRUM OIL & G/ADR is trading at a lower price-to-earnings ratio than Apache, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

98.2% of Apache shares are owned by institutional investors. 0.6% of Apache shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for NOSTRUM OIL & G/ADR and Apache, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NOSTRUM OIL & G/ADR 0 0 0 0 N/A
Apache 6 9 3 0 1.83

Apache has a consensus target price of $42.47, indicating a potential downside of 4.95%. Given Apache’s higher possible upside, analysts plainly believe Apache is more favorable than NOSTRUM OIL & G/ADR.

Dividends

Apache pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. NOSTRUM OIL & G/ADR does not pay a dividend. Apache pays out 416.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares NOSTRUM OIL & G/ADR and Apache’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NOSTRUM OIL & G/ADR -8.81% -4.98% -1.55%
Apache 19.67% 2.16% 0.84%

Summary

Apache beats NOSTRUM OIL & G/ADR on 14 of the 15 factors compared between the two stocks.

About NOSTRUM OIL & G/ADR

Nostrum Oil & Gas PLC, an independent oil and gas company, engages in the exploration, development, and production of oil and gas in the pre-Caspian Basin. The company discovers and develops oil and gas reserves, as well as produces and sells crude oil, stabilized condensate, liquefied petroleum gas, and dry gas. Its principal producing asset is the Chinarevskoye field located in north-west Kazakhstan. As of January 1, 2018, the company had a proved and probable reserve of 488mmboe. The company was founded in 1997 and is headquartered in Amsterdam, the Netherlands.

About Apache

Apache Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids (NGLs). The company has operations in onshore assets located Permian and Midcontinent/Gulf Coast onshore regions; and offshore assets situated in the Gulf of Mexico region. It also holds onshore assets in Egypt's Western desert; and offshore assets in the North Sea region, including the United Kingdom. As of December 31, 2017, the company had total estimated proved reserves of 1.2 billion barrel of oil equivalent, including 583 million barrels of crude oil, 204 million barrels of NGLs, and 2.3 trillion cubic feet of natural gas. Apache Corporation was founded in 1954 and is based in Houston, Texas.

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