EQT (NYSE:EQT) and Abraxas Petroleum (NASDAQ:AXAS) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.

Profitability

This table compares EQT and Abraxas Petroleum’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EQT -45.88% 4.46% 2.56%
Abraxas Petroleum -1.48% 30.57% 10.57%

Volatility and Risk

EQT has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, Abraxas Petroleum has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500.

Valuation and Earnings

This table compares EQT and Abraxas Petroleum’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EQT $4.56 billion 1.11 -$2.24 billion $1.70 11.68
Abraxas Petroleum $86.26 million 2.47 $16.00 million $0.12 10.67

Abraxas Petroleum has lower revenue, but higher earnings than EQT. Abraxas Petroleum is trading at a lower price-to-earnings ratio than EQT, indicating that it is currently the more affordable of the two stocks.

Dividends

EQT pays an annual dividend of $0.12 per share and has a dividend yield of 0.6%. Abraxas Petroleum does not pay a dividend. EQT pays out 7.1% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings for EQT and Abraxas Petroleum, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EQT 1 5 7 0 2.46
Abraxas Petroleum 0 0 3 0 3.00

EQT presently has a consensus price target of $38.69, suggesting a potential upside of 94.83%. Abraxas Petroleum has a consensus price target of $3.83, suggesting a potential upside of 199.48%. Given Abraxas Petroleum’s stronger consensus rating and higher probable upside, analysts clearly believe Abraxas Petroleum is more favorable than EQT.

Institutional and Insider Ownership

96.5% of EQT shares are held by institutional investors. Comparatively, 55.7% of Abraxas Petroleum shares are held by institutional investors. 0.7% of EQT shares are held by company insiders. Comparatively, 5.5% of Abraxas Petroleum shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Abraxas Petroleum beats EQT on 10 of the 16 factors compared between the two stocks.

EQT Company Profile

EQT Corporation operates as a natural gas production company in the United States. It produces natural gas, natural gas liquids (NGLs), and crude oil. As of December 31, 2018, this segment had 21.8 trillion cubic feet of proved natural gas, NGLs, and crude oil reserves across approximately 1.4 million gross acres. The company was founded in 1925 and is headquartered in Pittsburgh, Pennsylvania.

Abraxas Petroleum Company Profile

Abraxas Petroleum Corporation, an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of oil and gas properties in the United States. The company operates oil and gas assets in the Permian/Delaware Basin, the Rocky Mountain, and South Texas regions. As of December 31, 2017, its estimated net proved reserves were 65.4 million barrels of oil equivalent. The company was founded in 1977 and is based in San Antonio, Texas.

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