SandRidge Energy (NYSE:SD – Get Free Report) and Tourmaline Oil (OTCMKTS:TRMLF – Get Free Report) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.
Risk & Volatility
SandRidge Energy has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, Tourmaline Oil has a beta of -0.24, indicating that its share price is 124% less volatile than the S&P 500.
Institutional & Insider Ownership
61.8% of SandRidge Energy shares are owned by institutional investors. Comparatively, 1.8% of Tourmaline Oil shares are owned by institutional investors. 1.6% of SandRidge Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SandRidge Energy | $156.36 million | 3.39 | $70.20 million | $2.24 | 6.39 |
| Tourmaline Oil | $4.72 billion | 3.74 | $187.99 million | $0.72 | 63.01 |
Tourmaline Oil has higher revenue and earnings than SandRidge Energy. SandRidge Energy is trading at a lower price-to-earnings ratio than Tourmaline Oil, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares SandRidge Energy and Tourmaline Oil’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SandRidge Energy | 46.06% | 13.62% | 10.93% |
| Tourmaline Oil | 6.05% | 9.05% | 6.25% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for SandRidge Energy and Tourmaline Oil, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SandRidge Energy | 0 | 2 | 0 | 0 | 2.00 |
| Tourmaline Oil | 0 | 6 | 4 | 1 | 2.55 |
Tourmaline Oil has a consensus target price of $65.00, indicating a potential upside of 43.27%. Given Tourmaline Oil’s stronger consensus rating and higher probable upside, analysts plainly believe Tourmaline Oil is more favorable than SandRidge Energy.
Dividends
SandRidge Energy pays an annual dividend of $0.52 per share and has a dividend yield of 3.6%. Tourmaline Oil pays an annual dividend of $1.45 per share and has a dividend yield of 3.2%. SandRidge Energy pays out 23.2% of its earnings in the form of a dividend. Tourmaline Oil pays out 201.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SandRidge Energy has increased its dividend for 2 consecutive years. SandRidge Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
SandRidge Energy beats Tourmaline Oil on 10 of the 18 factors compared between the two stocks.
About SandRidge Energy
SandRidge Energy, Inc. engages in the acquisition, development, and production of oil, natural gas, and natural gas liquids in the United States Mid-Continent. The company was incorporated in 2006 and is headquartered in Oklahoma City, Oklahoma.
About Tourmaline Oil
Tourmaline Oil Corp. explores for and develops oil and natural gas properties in the Western Canadian Sedimentary Basin. The company holds interests in properties located in the Alberta Deep Basin, Northeast British Columbia Montney, and the Peace River High Triassic oil complex. Tourmaline Oil Corp. was incorporated in 2008 and is headquartered in Calgary, Canada.
Receive News & Ratings for SandRidge Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for SandRidge Energy and related companies with MarketBeat.com's FREE daily email newsletter.
