Chaparral Energy (NYSE:CHAP) and GulfSlope Energy (OTCMKTS:GSPE) are both small-cap oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Risk and Volatility

Chaparral Energy has a beta of 4.4, indicating that its stock price is 340% more volatile than the S&P 500. Comparatively, GulfSlope Energy has a beta of 2.65, indicating that its stock price is 165% more volatile than the S&P 500.

Insider and Institutional Ownership

91.8% of Chaparral Energy shares are owned by institutional investors. Comparatively, 0.0% of GulfSlope Energy shares are owned by institutional investors. 2.2% of Chaparral Energy shares are owned by company insiders. Comparatively, 44.3% of GulfSlope Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Chaparral Energy and GulfSlope Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chaparral Energy -86.43% -2.08% -1.23%
GulfSlope Energy N/A -1,320.37% -28.86%

Analyst Recommendations

This is a breakdown of current recommendations for Chaparral Energy and GulfSlope Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chaparral Energy 0 0 1 0 3.00
GulfSlope Energy 0 0 0 0 N/A

Chaparral Energy currently has a consensus price target of $6.00, indicating a potential upside of 559.34%. Given Chaparral Energy’s higher probable upside, analysts clearly believe Chaparral Energy is more favorable than GulfSlope Energy.

Earnings and Valuation

This table compares Chaparral Energy and GulfSlope Energy’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chaparral Energy $247.36 million 0.17 $33.44 million $0.31 2.94
GulfSlope Energy N/A N/A -$13.72 million N/A N/A

Chaparral Energy has higher revenue and earnings than GulfSlope Energy.

Summary

Chaparral Energy beats GulfSlope Energy on 9 of the 11 factors compared between the two stocks.

About Chaparral Energy

Chaparral Energy, Inc. engages in the acquisition, exploration, development, production, and operation of onshore oil and natural gas properties primarily in Oklahoma, the United States. The company sells crude oil, natural gas, and natural gas liquids primarily to refineries and gas processing plant. The company was founded in 1988 and is headquartered in Oklahoma City, Oklahoma.

About GulfSlope Energy

GulfSlope Energy, Inc., an independent oil and natural gas exploration company, focuses on the exploration and development of oil and natural gas properties in the Gulf of Mexico federal waters offshore Louisiana in the United States. It has leased 14 federal outer continental shelf blocks and licensed 2.2 million acres of three-dimensional seismic data in its area of concentration. The company was formerly known as Plan A Promotions, Inc. and changed its name to GulfSlope Energy, Inc. in April 2012. GulfSlope Energy, Inc. was founded in 2003 and is headquartered in Houston, Texas.

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