Independence Contract Drilling (NYSE: ICD) and Blue Ridge Mountain Resources (OTCMKTS:MHRCQ) are both small-cap oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.
This is a breakdown of current ratings and price targets for Independence Contract Drilling and Blue Ridge Mountain Resources, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Independence Contract Drilling||0||1||5||0||2.83|
|Blue Ridge Mountain Resources||0||0||0||0||N/A|
Independence Contract Drilling presently has a consensus price target of $5.94, suggesting a potential upside of 20.93%. Given Independence Contract Drilling’s higher possible upside, analysts clearly believe Independence Contract Drilling is more favorable than Blue Ridge Mountain Resources.
Volatility and Risk
Independence Contract Drilling has a beta of 2.8, indicating that its stock price is 180% more volatile than the S&P 500. Comparatively, Blue Ridge Mountain Resources has a beta of 2.75, indicating that its stock price is 175% more volatile than the S&P 500.
This table compares Independence Contract Drilling and Blue Ridge Mountain Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Independence Contract Drilling||-34.87%||-8.28%||-6.78%|
|Blue Ridge Mountain Resources||-2,141.83%||N/A||-174.34%|
Institutional and Insider Ownership
78.2% of Independence Contract Drilling shares are owned by institutional investors. 11.8% of Independence Contract Drilling shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Independence Contract Drilling and Blue Ridge Mountain Resources’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Independence Contract Drilling||$70.06 million||2.66||-$22.17 million||($0.79)||-6.22|
|Blue Ridge Mountain Resources||N/A||N/A||N/A||($1.02)||0.00|
Blue Ridge Mountain Resources has lower revenue, but higher earnings than Independence Contract Drilling. Independence Contract Drilling is trading at a lower price-to-earnings ratio than Blue Ridge Mountain Resources, indicating that it is currently the more affordable of the two stocks.
Independence Contract Drilling beats Blue Ridge Mountain Resources on 9 of the 11 factors compared between the two stocks.
Independence Contract Drilling Company Profile
Independence Contract Drilling, Inc. provides land-based contract drilling services for oil and natural gas producers in the United States. The company constructs, owns, and operates a fleet of ShaleDriller rigs to optimize the development of various oil and gas properties in the Permian Basin. As of December 31, 2016, it had 12 rigs. The company was founded in 2011 and is headquartered in Houston, Texas.
Blue Ridge Mountain Resources Company Profile
Blue Ridge Mountain Resources, Inc., formerly Magnum Hunter Resources Corporation, is an independent exploration and production company engaged in the acquisition, development and production of natural gas, natural gas liquids and crude oil, primarily in the states of West Virginia and Ohio. The Company operates through three segments: Upstream, Midstream and Oil Field Services. The Upstream segment is organized and operated to explore for and produce crude oil and natural gas within the geographic boundaries of the United States and Canada. The Midstream segment consists primarily of Eureka Hunter Holdings, LLC (Eureka Midstream Holdings), which markets natural gas and operates a network of pipelines and compression stations that gather natural gas and natural gas liquids (NGLs) in the United States for transportation to market. The Oilfield Services segment provides drilling services to oil and natural gas exploration and production companies.
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