Energy XXI Gulf Coast (NASDAQ: EXXI) and Eclipse Resources (NYSE:ECR) are both small-cap energy companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Institutional & Insider Ownership

80.6% of Energy XXI Gulf Coast shares are held by institutional investors. Comparatively, 92.5% of Eclipse Resources shares are held by institutional investors. 0.1% of Energy XXI Gulf Coast shares are held by company insiders. Comparatively, 1.0% of Eclipse Resources 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.

Profitability

This table compares Energy XXI Gulf Coast and Eclipse Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Energy XXI Gulf Coast N/A N/A N/A
Eclipse Resources -11.46% -3.00% -1.44%

Analyst Recommendations

This is a breakdown of current recommendations for Energy XXI Gulf Coast and Eclipse Resources, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Energy XXI Gulf Coast 0 0 0 0 N/A
Eclipse Resources 1 4 7 0 2.50

Eclipse Resources has a consensus price target of $2.96, suggesting a potential upside of 19.88%. Given Eclipse Resources’ higher probable upside, analysts clearly believe Eclipse Resources is more favorable than Energy XXI Gulf Coast.

Earnings and Valuation

This table compares Energy XXI Gulf Coast and Eclipse Resources’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Energy XXI Gulf Coast N/A N/A N/A N/A N/A
Eclipse Resources $235.03 million 2.76 -$203.80 million ($0.16) -15.44

Energy XXI Gulf Coast has higher earnings, but lower revenue than Eclipse Resources.

Summary

Eclipse Resources beats Energy XXI Gulf Coast on 5 of the 8 factors compared between the two stocks.

About Energy XXI Gulf Coast

Energy XXI Gulf Coast, Inc. (EGC) is an independent oil and natural gas development and production company which was focused on development drilling on the Company’s core properties. The Company’s properties are located in the United States Gulf of Mexico waters and the Gulf Coast onshore. The Company operates nine oilfields on the Gulf of Mexico Shelf. As of December 31, 2016, total proved reserves were 121.9 million barrels of oil equivalents (MMBOE) of which 78% were crude oil. The Company operated in 616 gross producing wells on 439,294 net developed acres, including interests in 57 producing fields. The Company’s projects include Main Pass Complex, West Delta, Ship Shoal, Grand Isle and South Timbalier. The Main Pass complex is located in approximately 100 feet of water near the mouth of the mississippi river. It includes Main Pass 61 field and Main Pass 73 field along with the Main Pass 296 and 311.

About Eclipse Resources

Eclipse Resources Corporation is an independent exploration and production company. The Company is engaged in the acquisition and development of oil and natural gas properties in the Appalachian Basin. The Company is the operator of the Utica Core Area and its Marcellus Project Area. The Ordovician-aged Utica Shale is an unconventional reservoir consisting of organic-rich black shale, with production occurring at vertical depths between 6,000 and 10,000 feet. The Marcellus Shale consists of organic-rich black shale, with production occurring at vertical depths between 5,000 and 8,000 feet. As of December 31, 2016, the Company had commenced drilling 202 gross wells within the Utica Core Area and three gross wells within its Marcellus Area. As of December 31, 2016, it had approximately 92,000 net acres in the Utica Shale in Eastern Ohio within the Utica Core Area. As of December 31, 2016, the Company had assembled an acreage position approximating 199,000 net acres in Eastern Ohio.

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