Pengrowth Energy (NYSE: PGH) and Kosmos Energy (NYSE:KOS) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Profitability

This table compares Pengrowth Energy and Kosmos Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pengrowth Energy -101.66% -38.22% -14.60%
Kosmos Energy -23.83% -8.88% -2.98%

Volatility & Risk

Pengrowth Energy has a beta of 2.36, meaning that its share price is 136% more volatile than the S&P 500. Comparatively, Kosmos Energy has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500.

Institutional and Insider Ownership

14.5% of Pengrowth Energy shares are held by institutional investors. 3.8% of Kosmos Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Pengrowth Energy and Kosmos Energy’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pengrowth Energy $427.50 million 1.06 -$221.80 million ($0.81) -1.01
Kosmos Energy $385.36 million 7.78 -$283.78 million ($0.40) -19.25

Pengrowth Energy has higher revenue and earnings than Kosmos Energy. Kosmos Energy is trading at a lower price-to-earnings ratio than Pengrowth Energy, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for Pengrowth Energy and Kosmos Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pengrowth Energy 7 1 0 0 1.13
Kosmos Energy 0 4 9 0 2.69

Pengrowth Energy presently has a consensus price target of $2.19, indicating a potential upside of 166.77%. Kosmos Energy has a consensus price target of $9.60, indicating a potential upside of 24.68%. Given Pengrowth Energy’s higher probable upside, equities analysts clearly believe Pengrowth Energy is more favorable than Kosmos Energy.

Summary

Kosmos Energy beats Pengrowth Energy on 8 of the 13 factors compared between the two stocks.

About Pengrowth Energy

Pengrowth Energy Corporation is engaged in the development, production and acquisition of, and the exploration for, oil and natural gas reserves in the provinces of Alberta, British Columbia, Saskatchewan and Nova Scotia. The Lindbergh thermal property is located approximately 420 kilometers north east of Calgary, Alberta and 50 kilometers south of Bonnyville, Alberta. Its Greater Olds/Garrington area is located approximately 100 kilometers north of Calgary, Alberta. It has varied Working Interests within the Swan Hills area in all of the properties throughout this regional Beaverhill Lake resource base. These are both operated and non-operated, unit and non-unit properties in Judy Creek, Carson Creek, House Mountain, Deer Mountain, Swan Hills, South Swan Hills and Freeman. The properties are located approximately 200 kilometers northwest of Edmonton, Alberta. Its Groundbirch property is located approximately 40 kilometers south west of Fort St. John, British Columbia.

About Kosmos Energy

Kosmos Energy Ltd. (Kosmos) is an independent oil and gas exploration and production company. The Company is focused on the emerging areas along the Atlantic Margins. Its assets include existing production and development projects offshore Ghana, discoveries and further exploration potential offshore Mauritania and Senegal, as well as exploration licenses with hydrocarbon potential offshore Sao Tome and Principe, Suriname, Morocco and Western Sahara. The Company has operations in Africa and South America. The West Cape Three Points (WCTP) Block and Deepwater Tano (DT) Block are located within the Tano Basin, offshore Ghana. The Tano Basin represents the eastern extension of the Deep Ivorian Basin, which resulted from the development of an extensional sedimentary basin caused by tensional forces associated with opening of the Atlantic Ocean, as South America separated from Africa in the Mid-Cretaceous period.

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