Torchlight Energy Resources (NASDAQ:TRCH) and Escalera Resources (OTCMKTS:ESCRQ) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.
This table compares Torchlight Energy Resources and Escalera Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Torchlight Energy Resources||-147.43%||-11.90%||-6.31%|
8.7% of Torchlight Energy Resources shares are held by institutional investors. 29.3% of Torchlight Energy Resources shares are held by company insiders. Comparatively, 9.3% of Escalera Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Risk & Volatility
Torchlight Energy Resources has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, Escalera Resources has a beta of -12.26, indicating that its stock price is 1,326% less volatile than the S&P 500.
This is a summary of current recommendations and price targets for Torchlight Energy Resources and Escalera Resources, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Torchlight Energy Resources||0||0||2||0||3.00|
Torchlight Energy Resources currently has a consensus target price of $1.75, suggesting a potential upside of 169.23%. Given Torchlight Energy Resources’ higher possible upside, equities analysts plainly believe Torchlight Energy Resources is more favorable than Escalera Resources.
Valuation and Earnings
This table compares Torchlight Energy Resources and Escalera Resources’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Torchlight Energy Resources||$570,000.00||79.95||-$910,000.00||N/A||N/A|
Escalera Resources has lower revenue, but higher earnings than Torchlight Energy Resources.
Torchlight Energy Resources beats Escalera Resources on 6 of the 9 factors compared between the two stocks.
Torchlight Energy Resources Company Profile
Torchlight Energy Resources, Inc., through its subsidiaries, engages in the acquisition, exploration, exploitation, and/or development of oil and natural gas properties in the United States. As of December 31, 2017 it had interests in four oil and gas projects, including the Orogrande project in Hudspeth County, Texas; Hazel project in Sterling, Tom Green, and Irion Counties, Texas; Winkler project in Winkler County, Texas; and Hunton wells in partnership with Husky Ventures in Central Oklahoma. The company was founded in 2010 and is based in Plano, Texas.
Escalera Resources Company Profile
Escalera Resources Co., an independent energy company, explores, develops, produces, and sells natural gas and crude oil primarily in the Rocky Mountain basins of the Western United States. It holds interests in the Atlantic Rim coalbed natural gas project located in south central Wyoming; and the Pinedale Anticline property located in the Green River Basin of Wyoming, as well as holds acreage with exploration potential in the Greater Green River Basin of Wyoming and the Huntington Basin of Nevada. The company also operates 91 producing wells in Wyoming and 1 well in Oklahoma; and gathers and transports third-party gas through its intrastate gas pipeline. As of December 31, 2014, it had estimated proved reserves of 85.8 billion cubic feet of natural gas and 247 thousand barrels of oil; owned interests in approximately 1,200 producing wells; and had an acreage position of 112,219 net acres in natural gas prone basins primarily located in the Rocky Mountains. The company was formerly known as Double Eagle Petroleum Co. and changed its name to Escalera Resources Co. in March 2014. Escalera Resources Co. was founded in 1972 and is headquartered in Denver, Colorado.
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