Baytex Energy (NYSE:BTE) and Seadrill (NYSE:SDRL) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.

Volatility and Risk

Baytex Energy has a beta of 2.56, meaning that its stock price is 156% more volatile than the S&P 500. Comparatively, Seadrill has a beta of 2.24, meaning that its stock price is 124% more volatile than the S&P 500.

Valuation and Earnings

This table compares Baytex Energy and Seadrill’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Baytex Energy $1.10 billion 0.60 -$250.98 million ($0.09) -13.11
Seadrill $1.25 billion 0.75 -$4.48 billion N/A N/A

Baytex Energy has higher earnings, but lower revenue than Seadrill.

Analyst Recommendations

This is a summary of current ratings for Baytex Energy and Seadrill, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Baytex Energy 1 0 7 0 2.75
Seadrill 0 1 0 0 2.00

Baytex Energy currently has a consensus price target of $3.68, suggesting a potential upside of 211.58%. Seadrill has a consensus price target of $304.00, suggesting a potential upside of 16,244.09%. Given Seadrill’s higher probable upside, analysts clearly believe Seadrill is more favorable than Baytex Energy.

Profitability

This table compares Baytex Energy and Seadrill’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Baytex Energy -6.62% 5.54% 2.68%
Seadrill N/A N/A N/A

Insider & Institutional Ownership

20.1% of Baytex Energy shares are held by institutional investors. Comparatively, 9.5% of Seadrill shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Baytex Energy beats Seadrill on 7 of the 11 factors compared between the two stocks.

Baytex Energy Company Profile

Baytex Energy Corp., an oil and gas company, acquires, develops, and produces oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. The company offers light oil, natural gas liquids, shale and natural gas, heavy gravity crude oil, bitumen, and heavy oil. Its principal oil and natural gas properties include the Eagle Ford property in Texas, Viking and Lloydminster properties in Alberta and Saskatchewan, Peace River and Duvernay properties in Alberta. As of March 6, 2019, it had proved developed producing reserves of 135 million barrels of oil equivalent (mmboe); proved reserves of 315 mmboe; and proved plus probable reserves of 527 mmboe. Baytex Energy Corp. was founded in 1993 and is headquartered in Calgary, Canada.

Seadrill Company Profile

Seadrill Ltd. is an offshore drilling contractor providing offshore drilling services to the oil and gas industry. Its primary business is the ownership and operation of drillships, semi-submersible rigs, jack-up rigs, tender rigs for operations in shallow, mid, deep, and ultra deep-water areas, and in benign and harsh environments. The company operates through the following segments: Floaters, Jack-up Rigs, and Other. The Floaters segment offer services encompassing drilling, completion, and maintenance of offshore exploration and production wells. The Jack-up Rigs segment offers drilling services, completion and maintenance of offshore exploration and production wells. The Other segment engages in management services to third parties and related parties. Seadrill was founded on May 10, 2005 and is headquartered in Hamilton, Bermuda.

Receive News & Ratings for Baytex Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Baytex Energy and related companies with MarketBeat.com's FREE daily email newsletter.