Apache (NYSE: APA) and NOSTRUM OIL & G/ADR (OTCMKTS:NSTRY) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.
Risk and Volatility
Apache has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, NOSTRUM OIL & G/ADR has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.
Apache pays an annual dividend of $1.00 per share and has a dividend yield of 2.1%. NOSTRUM OIL & G/ADR does not pay a dividend. Apache pays out 416.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Apache and NOSTRUM OIL & G/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|NOSTRUM OIL & G/ADR||-8.81%||-4.98%||-1.55%|
Institutional & Insider Ownership
98.1% of Apache shares are held by institutional investors. 0.6% of Apache shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Apache and NOSTRUM OIL & G/ADR’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Apache||$6.42 billion||2.78||$1.30 billion||$0.24||194.79|
|NOSTRUM OIL & G/ADR||$405.53 million||1.38||-$23.88 million||($0.52)||-22.91|
Apache has higher revenue and earnings than NOSTRUM OIL & G/ADR. NOSTRUM OIL & G/ADR is trading at a lower price-to-earnings ratio than Apache, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Apache and NOSTRUM OIL & G/ADR, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|NOSTRUM OIL & G/ADR||0||0||0||0||N/A|
Apache presently has a consensus target price of $42.47, indicating a potential downside of 9.16%. Given Apache’s higher probable upside, analysts clearly believe Apache is more favorable than NOSTRUM OIL & G/ADR.
Apache beats NOSTRUM OIL & G/ADR on 14 of the 15 factors compared between the two stocks.
Apache Company Profile
Apache Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids (NGLs). The company has operations in onshore assets located Permian and Midcontinent/Gulf Coast onshore regions; and offshore assets situated in the Gulf of Mexico region. It also holds onshore assets in Egypt's Western desert; and offshore assets in the North Sea region, including the United Kingdom. As of December 31, 2017, the company had total estimated proved reserves of 1.2 billion barrel of oil equivalent, including 583 million barrels of crude oil, 204 million barrels of NGLs, and 2.3 trillion cubic feet of natural gas. Apache Corporation was founded in 1954 and is based in Houston, Texas.
NOSTRUM OIL & G/ADR Company Profile
Nostrum Oil & Gas PLC, an independent oil and gas company, engages in the exploration, development, and production of oil and gas in the pre-Caspian Basin. The company discovers and develops oil and gas reserves, as well as produces and sells crude oil, stabilized condensate, liquefied petroleum gas, and dry gas. Its principal producing asset is the Chinarevskoye field located in north-west Kazakhstan. As of January 1, 2018, the company had a proved and probable reserve of 488mmboe. The company was founded in 1997 and is headquartered in Amsterdam, the Netherlands.
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