Contrasting APA (NASDAQ:APA) & Carbon Energy (OTCMKTS:CRBOD)

APA (NASDAQ:APA) and Carbon Energy (OTCMKTS:CRBOD) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
APA	34.04%	45.32%	8.87%
Carbon Energy	-38.38%	-8.44%	-2.43%

Insider and Institutional Ownership

83.0% of APA shares are owned by institutional investors. Comparatively, 10.5% of Carbon Energy shares are owned by institutional investors. 1.3% of APA shares are owned by company insiders. Comparatively, 7.1% of Carbon Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

APA has a beta of 3.29, meaning that its share price is 229% more volatile than the S&P 500. Comparatively, Carbon Energy has a beta of 0.15, meaning that its share price is 85% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for APA and Carbon Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
APA	3	10	5	1	2.21
Carbon Energy	0	0	0	0	N/A

APA currently has a consensus target price of $41.90, suggesting a potential upside of 42.71%. Given APA’s higher possible upside, research analysts plainly believe APA is more favorable than Carbon Energy.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
APA	$8.19 billion	1.33	$2.86 billion	$8.94	3.28
Carbon Energy	$116.63 million	0.00	$1.10 million	N/A	N/A

APA has higher revenue and earnings than Carbon Energy.

Summary

APA beats Carbon Energy on 11 of the 12 factors compared between the two stocks.

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.

About Carbon Energy

Carbon Energy Corporation, an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids properties in the United States. It focuses on conventional and unconventional reservoirs, including shale, tight sand, and coalbed methane located in the Appalachian, Illinois, and Ventura Basins. As of December 31, 2018, it owned working interests in 7,100 net wells and royalty interests in approximately 900 wells located in California, Illinois, Indiana, Kentucky, Ohio, Tennessee, Virginia, and West Virginia, as well as had leasehold positions in approximately 340,700 net developed acres and approximately 1,319,200 net undeveloped acres. The company was formerly known as Carbon Natural Gas Company and changed its name to Carbon Energy Corporation in June 2018. Carbon Energy Corporation was founded in 2007 and is based in Denver, Colorado.