Critical Survey: Rock Energy Resources (OTCMKTS:RCKE) & APA (NASDAQ:APA)

Rock Energy Resources (OTCMKTS:RCKE) and APA (NASDAQ:APA) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rock Energy Resources	N/A	N/A	N/A
APA	15.49%	19.86%	7.16%

Analyst Ratings

This is a breakdown of current recommendations for Rock Energy Resources and APA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rock Energy Resources	0	0	0	0	0.00
APA	3	16	6	0	2.12

APA has a consensus target price of $26.64, indicating a potential upside of 4.99%. Given APA’s stronger consensus rating and higher probable upside, analysts clearly believe APA is more favorable than Rock Energy Resources.

Insider & Institutional Ownership

83.0% of APA shares are held by institutional investors. 88.0% of Rock Energy Resources shares are held by insiders. Comparatively, 0.7% of APA shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Rock Energy Resources and APA”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rock Energy Resources	N/A	N/A	N/A	N/A	N/A
APA	$9.64 billion	0.93	$804.00 million	$4.16	6.10

APA has higher revenue and earnings than Rock Energy Resources.

Summary

APA beats Rock Energy Resources on 8 of the 9 factors compared between the two stocks.

About Rock Energy Resources

Rock Energy Resources, Inc., through its subsidiary, engages in the development of gold and associated mineral assets. It holds interests in the Red Arrow mine. The company was founded on April 16, 2004 and is headquartered in Houston, TX.

About APA

APA Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids. It has oil and gas operations in the United States, Egypt, and North Sea. The company also has exploration and appraisal activities in Suriname, as well as holds interests in projects located in Uruguay and internationally. APA Corporation was incorporated in 1954 and is headquartered in Houston, Texas.