Alta Mesa Resources (NASDAQ: AMR) and AgroFresh Solutions (NASDAQ:AGFS) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.
Earnings and Valuation
This table compares Alta Mesa Resources and AgroFresh Solutions’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alta Mesa Resources||N/A||N/A||$1.89 million||N/A||N/A|
|AgroFresh Solutions||$164.03 million||2.25||$23.47 million||N/A||N/A|
AgroFresh Solutions has higher revenue and earnings than Alta Mesa Resources.
Insider & Institutional Ownership
50.0% of Alta Mesa Resources shares are owned by institutional investors. Comparatively, 76.4% of AgroFresh Solutions shares are owned by institutional investors. 0.2% of Alta Mesa Resources shares are owned by insiders. Comparatively, 15.2% of AgroFresh Solutions shares are owned 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.
This is a summary of recent ratings and recommmendations for Alta Mesa Resources and AgroFresh Solutions, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alta Mesa Resources||0||0||2||0||3.00|
Alta Mesa Resources currently has a consensus price target of $11.50, indicating a potential upside of 61.06%. AgroFresh Solutions has a consensus price target of $8.00, indicating a potential upside of 9.29%. Given Alta Mesa Resources’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Alta Mesa Resources is more favorable than AgroFresh Solutions.
This table compares Alta Mesa Resources and AgroFresh Solutions’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alta Mesa Resources||N/A||-7.96%||-3.71%|
Risk & Volatility
Alta Mesa Resources has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500. Comparatively, AgroFresh Solutions has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.
AgroFresh Solutions beats Alta Mesa Resources on 7 of the 11 factors compared between the two stocks.
About Alta Mesa Resources
Alta Mesa Resources, Inc. focuses on the acquisition and development of unconventional oil and natural gas reserves in the Anadarko Basin. The company also offers midstream energy services, including crude oil and gas gathering, processing, and marketing to producers of natural gas, natural gas liquids, crude oil, and condensate in the STACK Play region of Oklahoma. As of December 31, 2017, its oil, natural gas, and natural gas liquids reserves were 176.2 million barrels of oil equivalent. The company was formerly known as Silver Run Acquisition Corporation II and changed its name to Alta Mesa Resources, Inc. in February 2018. Alta Mesa Resources, Inc. was founded in 1987 and is based in Houston, Texas.
About AgroFresh Solutions
AgroFresh Solutions, Inc. provides data-driven specialty solutions worldwide. The company uses 1-Methylcyclopropene technology, an ethylene action inhibitor to maintain freshness and extend the shelf life of various fresh produce. Its solutions enable growers and packers of fresh produce to preserve and enhance the freshness, quality, and value of fresh produce, including apples, pears, kiwifruit, avocados, and bananas, as well as flowers. The company's flagship product is the SmartFresh Quality System that regulates the post-harvest ripening effects of ethylene to preserve the texture, firmness, taste, and appearance of produce during storage, transportation, and retail display. It also provides Harvista technology for use in pre-harvest management of pome fruit, such as apples and pears. In addition, the company is developing AdvanStore technology for monitoring fresh fruits while in storage; RipeLock Quality System, a proprietary technology that extends the shelf life of bananas; and LandSpring, a proprietary technology that minimizes stress induced ethylene effects in vegetable seedling transplants allowing for post-transplant vigor. The company was formerly known as Boulevard Acquisition Corp. and changed its name to AgroFresh Solutions, Inc. in July 2015. AgroFresh Solutions, Inc. is headquartered in Philadelphia, Pennsylvania.
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