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

Institutional and Insider Ownership

38.3% of Comstock Resources shares are held by institutional investors. Comparatively, 95.6% of Kosmos Energy shares are held by institutional investors. 14.5% of Comstock Resources shares are held by insiders. Comparatively, 3.8% of Kosmos Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Comstock Resources and Kosmos Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Comstock Resources $255.33 million 0.52 -$111.40 million ($3.90) -2.10
Kosmos Energy $636.84 million 5.67 -$222.79 million ($0.33) -27.45

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Comstock Resources and Kosmos Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Comstock Resources 0 4 2 0 2.33
Kosmos Energy 0 1 9 0 2.90

Comstock Resources currently has a consensus target price of $9.70, indicating a potential upside of 18.44%. Kosmos Energy has a consensus target price of $9.95, indicating a potential upside of 9.78%. Given Comstock Resources’ higher possible upside, equities analysts clearly believe Comstock Resources is more favorable than Kosmos Energy.

Volatility and Risk

Comstock Resources has a beta of -0.14, suggesting that its stock price is 114% less volatile than the S&P 500. Comparatively, Kosmos Energy has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500.

Profitability

This table compares Comstock Resources and Kosmos Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Comstock Resources -52.14% N/A -3.97%
Kosmos Energy -49.78% -15.21% -4.39%

Summary

Kosmos Energy beats Comstock Resources on 8 of the 14 factors compared between the two stocks.

About Comstock Resources

Comstock Resources, Inc., an independent energy company, engages in the acquisition, exploration, and development of oil and gas resources primarily in Texas and Louisiana. The company is headquartered in Frisco, Texas.

About Kosmos Energy

Kosmos Energy Ltd. explores for and produces oil and gas in Africa and South America. Its asset portfolio includes production and other development projects in offshore Ghana and Equatorial Guinea; and exploration potential in offshore Mauritania and Senegal, as well as exploration licenses in offshore Cote d'Ivoire, Equatorial Guinea, Morocco, Sao Tome and Principe, and Suriname. The company was founded in 2003 and is based in Hamilton, Bermuda.

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