Baytex Energy (NYSE:BTE – Get Free Report) and Birchcliff Energy (OTCMKTS:BIREF – Get Free Report) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.
Profitability
This table compares Baytex Energy and Birchcliff Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Baytex Energy | -24.25% | -10.85% | -6.38% |
| Birchcliff Energy | 9.45% | 3.11% | 2.01% |
Valuation and Earnings
This table compares Baytex Energy and Birchcliff Energy”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Baytex Energy | $2.56 billion | 1.46 | -$432.12 million | ($0.70) | -7.31 |
| Birchcliff Energy | $508.03 million | 2.68 | $46.43 million | $0.17 | 29.12 |
Birchcliff Energy has lower revenue, but higher earnings than Baytex Energy. Baytex Energy is trading at a lower price-to-earnings ratio than Birchcliff Energy, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
46.2% of Baytex Energy shares are held by institutional investors. Comparatively, 0.8% of Birchcliff Energy shares are held by institutional investors. 0.8% of Baytex Energy shares are held by insiders. Comparatively, 1.5% of Birchcliff Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Dividends
Baytex Energy pays an annual dividend of $0.07 per share and has a dividend yield of 1.4%. Birchcliff Energy pays an annual dividend of $0.09 per share and has a dividend yield of 1.8%. Baytex Energy pays out -10.0% of its earnings in the form of a dividend. Birchcliff Energy pays out 52.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Analyst Ratings
This is a breakdown of recent recommendations for Baytex Energy and Birchcliff Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Baytex Energy | 1 | 5 | 3 | 1 | 2.40 |
| Birchcliff Energy | 0 | 2 | 1 | 1 | 2.75 |
Volatility & Risk
Baytex Energy has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, Birchcliff Energy has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500.
Summary
Birchcliff Energy beats Baytex Energy on 10 of the 15 factors compared between the two stocks.
About Baytex Energy
Baytex Energy Corp. is an oil & gas exploration and production company. The firm engages in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. The company was founded on June 3, 1993 and is headquartered in Calgary, Canada.
About Birchcliff Energy
Birchcliff Energy Ltd., an intermediate oil and natural gas company, explores for, develops, and produces natural gas, light oil, condensate, and other natural gas liquids in Western Canada. The company holds interests in the areas of Montney/Doig Resource Play, including the Pouce Coupe and Gordondale properties in Alberta. Birchcliff Energy Ltd. was founded in 2004 and is headquartered in Calgary, Canada.
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