SandRidge Energy (NYSE:SD) & Amplify Energy (NYSE:AMPY) Head-To-Head Survey

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SandRidge Energy	39.25%	7.92%	6.34%
Amplify Energy	20.99%	16.22%	8.79%

Earnings and Valuation

This table compares SandRidge Energy and Amplify Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SandRidge Energy	$120.24 million	3.58	$60.86 million	$1.28	9.05
Amplify Energy	$304.65 million	0.86	$392.75 million	$1.54	4.29

Amplify Energy has higher revenue and earnings than SandRidge Energy. Amplify 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.

Dividends

SandRidge Energy pays an annual dividend of $0.44 per share and has a dividend yield of 3.8%. Amplify Energy pays an annual dividend of $0.40 per share and has a dividend yield of 6.1%. SandRidge Energy pays out 34.4% of its earnings in the form of a dividend. Amplify Energy pays out 26.0% 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. Amplify Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

SandRidge Energy has a beta of 2.1, suggesting that its stock price is 110% more volatile than the S&P 500. Comparatively, Amplify Energy has a beta of 1.93, suggesting that its stock price is 93% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for SandRidge Energy and Amplify Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SandRidge Energy	0	0	0	0	0.00
Amplify Energy	0	0	3	0	3.00

Amplify Energy has a consensus target price of $10.00, indicating a potential upside of 51.29%. Given Amplify Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Amplify Energy is more favorable than SandRidge Energy.

Institutional & Insider Ownership

61.8% of SandRidge Energy shares are held by institutional investors. Comparatively, 42.8% of Amplify Energy shares are held by institutional investors. 1.2% of SandRidge Energy shares are held by insiders. Comparatively, 2.0% of Amplify Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Amplify Energy beats SandRidge Energy on 11 of the 16 factors compared between the two stocks.

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.

About Amplify Energy

Amplify Energy Corp., together with its subsidiaries, engages in the acquisition, development, exploitation, and production of oil and natural gas properties in the United States. The company’s properties consist of operated and non-operated working interests in producing and undeveloped leasehold acreage, as well as working interests in identified producing wells located in Oklahoma, the Rockies, federal waters offshore Southern California, East Texas/North Louisiana, and Eagle Ford. The company is based in Houston, Texas.