Stone Energy Corporation (NYSE: SGY) and Warren Resources (NASDAQ:WRES) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares Stone Energy Corporation and Warren Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stone Energy Corporation 41.74% -215.45% 29.97%
Warren Resources -1,581.83% N/A -288.54%

Earnings and Valuation

This table compares Stone Energy Corporation and Warren Resources’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Stone Energy Corporation $364.82 million 1.53 $201.90 million N/A N/A
Warren Resources N/A N/A N/A N/A N/A

Stone Energy Corporation has higher revenue and earnings than Warren Resources.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Stone Energy Corporation and Warren Resources, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stone Energy Corporation 1 1 1 0 2.00
Warren Resources 0 0 0 0 N/A

Stone Energy Corporation presently has a consensus price target of $6.50, indicating a potential downside of 76.69%. Given Stone Energy Corporation’s higher possible upside, analysts clearly believe Stone Energy Corporation is more favorable than Warren Resources.

Institutional & Insider Ownership

96.3% of Stone Energy Corporation shares are held by institutional investors. 3.5% of Stone Energy Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Stone Energy Corporation beats Warren Resources on 7 of the 8 factors compared between the two stocks.

About Stone Energy Corporation

Stone Energy Corporation is an independent oil and natural gas company. The Company is engaged in the acquisition, exploration, exploitation, development and operation of oil and gas properties. The Company operates in the Gulf of Mexico (GOM) basin. It has leveraged its operations in the GOM conventional shelf and has its reserve base in the prolific basins of the GOM deep water, Gulf Coast deep gas, and the Marcellus and Utica shales in Appalachia. Its estimated proved oil and natural gas reserves are over 60 million barrels of oil equivalents (MMBoe) or 340 billion cubic feet equivalent (Bcfe). Over 95 MMBoe or 570 Bcfe of its estimated proved reserves are revised downward. It has made investments in seismic data and leasehold interests, and has geological, geophysical, engineering and operational operations in deep water arena to evaluate potential exploration, development and acquisition opportunities. It holds over two deep water platforms, producing reserves and various leases.

About Warren Resources

Warren Resources, Inc. is an independent energy company engaged in the exploration, development and production of domestic onshore crude oil and gas reserves. The Company’s development activities are focused on waterflood oil recovery projects in the Wilmington field in California, coalbed methane (CBM) projects in Wyoming and its Marcellus Shale project that utilizes horizontal drilling and hydraulic fracturing techniques to develop dry natural gas. The Company owns natural gas and oil leasehold interests in approximately 106,330 gross (over 80,550 net) acres. All its undeveloped acreage is located in Wyoming. It has identified approximately 140 gross drilling locations in its Wilmington field units. Additionally, it has identified over 140 gross drilling locations on its acreage in Wyoming, primarily based on approximately 80-acre well spacing and over 70 gross drilling locations in the Marcellus Shale. It has interests in approximately 570 gross (over 411.3 net) producing wells.

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