Analyzing Obsidian Energy (OTCMKTS:OBELF) and SandRidge Energy (NYSE:SD)

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

Volatility & Risk

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

Institutional and Insider Ownership

0.0% of Obsidian Energy shares are owned by institutional investors. Comparatively, 61.8% of SandRidge Energy shares are owned by institutional investors. 1.4% of SandRidge Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

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

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

SandRidge Energy has lower revenue, but higher earnings 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Obsidian Energy and SandRidge Energy, as provided by MarketBeat.com.

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

Profitability

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

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

Summary

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

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.

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.