Critical Analysis: Bonanza Creek Energy (BCEI) versus The Competition
Bonanza Creek Energy (NYSE: BCEI) is one of 188 publicly-traded companies in the “Independent Oil & Gas” industry, but how does it contrast to its rivals? We will compare Bonanza Creek Energy to related businesses based on the strength of its analyst recommendations, profitability, valuation, institutional ownership, risk, earnings and dividends.
This table compares Bonanza Creek Energy and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bonanza Creek Energy||-33.79%||-3.17%||-1.09%|
|Bonanza Creek Energy Competitors||-8,106.00%||-63.21%||-13.37%|
This is a summary of recent ratings and target prices for Bonanza Creek Energy and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bonanza Creek Energy||0||3||0||0||2.00|
|Bonanza Creek Energy Competitors||232||2046||3167||166||2.58|
Bonanza Creek Energy presently has a consensus price target of $25.00, suggesting a potential downside of 23.87%. As a group, “Independent Oil & Gas” companies have a potential upside of 23.60%. Given Bonanza Creek Energy’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Bonanza Creek Energy has less favorable growth aspects than its rivals.
Valuation and Earnings
This table compares Bonanza Creek Energy and its rivals gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Bonanza Creek Energy||$195.29 million||-$198.95 million||-0.07|
|Bonanza Creek Energy Competitors||$324.27 million||-$31.05 million||-7.16|
Bonanza Creek Energy’s rivals have higher revenue and earnings than Bonanza Creek Energy. Bonanza Creek Energy is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Institutional and Insider Ownership
91.3% of Bonanza Creek Energy shares are owned by institutional investors. Comparatively, 48.5% of shares of all “Independent Oil & Gas” companies are owned by institutional investors. 0.6% of Bonanza Creek Energy shares are owned by insiders. Comparatively, 15.8% of shares of all “Independent Oil & Gas” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Bonanza Creek Energy rivals beat Bonanza Creek Energy on 7 of the 11 factors compared.
Bonanza Creek Energy Company Profile
Bonanza Creek Energy, Inc. (Bonanza Creek) is an independent energy company engaged in the acquisition, exploration, development and production of onshore oil and associated liquids-rich natural gas in the United States. The Company’s oil and liquids-weighted assets are concentrated primarily in the Wattenberg Field in Colorado and the Dorcheat Macedonia Field in southern Arkansas. In addition, the Company owns and operates oil-producing assets in the North Park Basin in Colorado and the McKamie Patton Field in southern Arkansas. The main areas in which the Company operates in the Rocky Mountain region are the Wattenberg Field in Weld County, Colorado and the North Park Basin in Jackson County, Colorado. Its Wattenberg Field operations are in the oil and liquids-weighted extension area of the Wattenberg Field targeting the Niobrara and Codell formations. In southern Arkansas, it targets the oil-rich Cotton Valley sands in the Dorcheat Macedonia and McKamie Patton Fields.
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