U.S. Energy (NASDAQ:USEG) and Enterprise GP (NYSE:EPE) are both small-cap oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Analyst Recommendations

This is a summary of current recommendations for U.S. Energy and Enterprise GP, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
U.S. Energy 0 0 0 0 N/A
Enterprise GP 1 6 0 0 1.86

Enterprise GP has a consensus price target of $2.36, indicating a potential upside of 148.12%. Given Enterprise GP’s higher probable upside, analysts clearly believe Enterprise GP is more favorable than U.S. Energy.

Volatility & Risk

U.S. Energy has a beta of -0.24, indicating that its share price is 124% less volatile than the S&P 500. Comparatively, Enterprise GP has a beta of 3.43, indicating that its share price is 243% more volatile than the S&P 500.

Insider & Institutional Ownership

2.4% of U.S. Energy shares are held by institutional investors. Comparatively, 64.3% of Enterprise GP shares are held by institutional investors. 3.4% of U.S. Energy shares are held by company insiders. Comparatively, 0.4% of Enterprise GP shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares U.S. Energy and Enterprise GP’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
U.S. Energy $6.55 million 1.66 -$1.36 million N/A N/A
Enterprise GP $1.07 billion 0.23 -$194.00 million ($0.39) -2.44

U.S. Energy has higher earnings, but lower revenue than Enterprise GP.

Profitability

This table compares U.S. Energy and Enterprise GP’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
U.S. Energy -15.20% -8.04% -5.69%
Enterprise GP -14.59% -12.75% -0.93%

Summary

Enterprise GP beats U.S. Energy on 6 of the 10 factors compared between the two stocks.

U.S. Energy Company Profile

U.S. Energy Corp., an independent energy company, focuses on the acquisition and development of oil and gas producing properties in the continental United States. It holds interests in various oil and gas projects in Williston Basin of North Dakota; Dimmit County of Texas; and Coastal Louisiana. As of December 31, 2017, the company had estimated proved reserves of 824,115 barrels of oil equivalent. It has interests in oil and gas leases covering 4,744 net acres; and 13.89 net producing wells. The company was founded in 1966 and is based in Denver, Colorado.

Enterprise GP Company Profile

EP Energy Corporation, an independent exploration and production company, engages in the exploration for and the acquisition, development, and production of oil, natural gas, and natural gas liquids in the United States. The company has interests in three primary areas, such as the Permian basin in West Texas; the Eagle Ford Shale in South Texas; and the Altamont Field in the Uinta basin in Northeastern Utah. As of December 31, 2017, it had proved reserves of 392.1 million barrels of oil equivalent and had average net daily production of 82,257 barrel of oil equivalent/per day. The company primarily sells its oil and natural gas production to third parties. EP Energy Corporation was founded in 2013 and is headquartered in Houston, Texas.

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