SandRidge Mississippian Trust II (SDR) vs. Encana (ECA) Head-To-Head Analysis

Share on StockTwits

Encana (NYSE: SDR) and SandRidge Mississippian Trust II (NYSE:SDR) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Volatility & Risk

Encana has a beta of 2, indicating that its share price is 100% more volatile than the S&P 500. Comparatively, SandRidge Mississippian Trust II has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Valuation & Earnings

This table compares Encana and SandRidge Mississippian Trust II’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Encana $4.44 billion 2.71 $827.00 million $0.43 29.23
SandRidge Mississippian Trust II $15.64 million 4.55 $11.60 million N/A N/A

Encana has higher revenue and earnings than SandRidge Mississippian Trust II.

Profitability

This table compares Encana and SandRidge Mississippian Trust II’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Encana 1.49% 7.30% 3.24%
SandRidge Mississippian Trust II 73.36% 24.02% 24.02%

Institutional and Insider Ownership

68.0% of Encana shares are held by institutional investors. Comparatively, 0.7% of SandRidge Mississippian Trust II shares are held by institutional investors. 0.1% of Encana shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Encana pays an annual dividend of $0.06 per share and has a dividend yield of 0.5%. SandRidge Mississippian Trust II pays an annual dividend of $0.18 per share and has a dividend yield of 12.6%. Encana pays out 14.0% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations and price targets for Encana and SandRidge Mississippian Trust II, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Encana 0 1 20 1 3.00
SandRidge Mississippian Trust II 0 0 0 0 N/A

Encana presently has a consensus price target of $15.98, indicating a potential upside of 27.09%. Given Encana’s higher probable upside, analysts clearly believe Encana is more favorable than SandRidge Mississippian Trust II.

Summary

Encana beats SandRidge Mississippian Trust II on 8 of the 14 factors compared between the two stocks.

Encana Company Profile

Encana Corporation, together with its subsidiaries, engages in the exploration, development, production, and marketing of natural gas, oil, and natural gas liquids. The company holds interests in various assets, including the Montney in northern British Columbia and northwest Alberta; Duvernay in west central Alberta; and other upstream operations comprising Wheatland in southern Alberta, Horn River in northeast British Columbia, and Deep Panuke located in offshore Nova Scotia in Canada. It also owns interests in assets consisting of the Eagle Ford in south Texas and Permian in west Texas; and San Juan in northwest New Mexico. The company primarily markets its products to refiners, local distribution companies, energy marketing companies, and electronic exchanges. Encana Corporation was founded in 1971 and is headquartered in Calgary, Canada.

SandRidge Mississippian Trust II Company Profile

SandRidge Mississippian Trust II holds royalty interests in oil and natural gas properties. The company's properties are located in the Mississippian formation in Alfalfa, Grant, Kay, Noble, and Woods counties in northern Oklahoma and Barber, Comanche, Harper, and Sumner counties in southern Kansas. As of December 31, 2017, its properties consisted of royalty interests in the initial wells and 173 additional wells. The company was founded in 2011 and is based in Houston, Texas. SandRidge Mississippian Trust II is a subsidiary of SandRidge Exploration and Production, LLC.

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

Leave a Reply