Head to Head Analysis: Baytex Energy (BTE) vs. Noble (NE)

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

Institutional & Insider Ownership

84.4% of Noble shares are owned by institutional investors. Comparatively, 20.1% of Baytex Energy shares are owned by institutional investors. 1.0% of Noble shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Noble and Baytex Energy’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Noble $1.24 billion 1.26 -$516.51 million ($1.14) -5.55
Baytex Energy $1.42 billion 0.56 $67.24 million ($0.02) -166.50

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

Profitability

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

Net Margins Return on Equity Return on Assets
Noble -32.20% -6.29% -3.46%
Baytex Energy 4.57% -4.74% -2.04%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Noble and Baytex Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Noble 3 11 2 0 1.94
Baytex Energy 3 0 7 0 2.40

Noble presently has a consensus price target of $4.56, indicating a potential downside of 27.89%. Baytex Energy has a consensus price target of $5.00, indicating a potential upside of 50.15%. Given Baytex Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Baytex Energy is more favorable than Noble.

Volatility & Risk

Noble has a beta of 2.2, meaning that its stock price is 120% more volatile than the S&P 500. Comparatively, Baytex Energy has a beta of 3.08, meaning that its stock price is 208% more volatile than the S&P 500.

Summary

Baytex Energy beats Noble on 10 of the 13 factors compared between the two stocks.

Noble Company Profile

Noble Corporation plc operates as an offshore drilling contractor for the oil and gas industry worldwide. It provides contract drilling services using mobile offshore drilling units. As of December 31, 2017, the company operated a fleet of 8 drill ships, 6 semisubmersibles, and 14 jack ups. Noble Corporation plc was founded in 1921 and is headquartered in London, the United Kingdom.

Baytex Energy Company Profile

Baytex Energy Corp., an oil and gas company, engages in the acquisition, development, and production of oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. It offers heavy oil, heavy gravity crude oil, bitumen, light oil, and natural gas liquids. Its primary oil resource plays include the Eagle Ford in Texas, and the Peace River Oil Sands and Lloydminster heavy oil projects in North America. The company provides 612 million barrels of oil equivalent; bitumen in low estimate to 1,181 million barrels of oil equivalent; and bitumen in the high estimate to 798 million barrels of oil equivalent. Baytex Energy Corp. was founded in 1993 and is headquartered in Calgary, Canada.

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