Head-To-Head Comparison: SandRidge Energy (NYSE:SD) vs. Obsidian Energy (OTCMKTS:OBELF)

SandRidge Energy (NYSE:SD) and Obsidian Energy (OTCMKTS:OBELF) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for SandRidge Energy and Obsidian Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SandRidge Energy	0	0	0	0	N/A
Obsidian Energy	0	0	0	0	N/A

Institutional & Insider Ownership

61.8% of SandRidge Energy shares are held by institutional investors. Comparatively, 0.0% of Obsidian Energy shares are held by institutional investors. 1.4% of SandRidge Energy shares are held 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.

Valuation & Earnings

This table compares SandRidge Energy and Obsidian Energy’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SandRidge Energy	$148.64 million	3.39	$60.86 million	$1.64	8.28
Obsidian Energy	$220.00 million	2.90	-$576.07 million	$4.17	1.90

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

Volatility & Risk

SandRidge Energy has a beta of 2.16, meaning that its share price is 116% more volatile than the S&P 500. Comparatively, Obsidian Energy has a beta of 2.47, meaning that its share price is 147% more volatile than the S&P 500.

Profitability

This table compares SandRidge Energy and Obsidian Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SandRidge Energy	40.94%	14.50%	11.79%
Obsidian Energy	99.13%	78.07%	35.32%

Summary

Obsidian Energy beats SandRidge Energy on 6 of the 11 factors compared between the two stocks.

About SandRidge Energy

SandRidge Energy, Inc. engages in the acquisition, development, and production of oil, natural gas, and natural gas liquids in the United States Mid-Continent. The company was incorporated in 2006 and is headquartered in Oklahoma City, Oklahoma.

About Obsidian Energy

Obsidian Energy Ltd. is an exploration and production company. The firm engages in exploring, developing, and holds interests in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin directly and through investments in securities of subsidiaries holding such interests. Its property portfolio includes Cardium, Viking, and Peace River. The company was founded on December 27, 1979 and is headquartered in Calgary, Canada.