Paramount Resources (OTCMKTS:PRMRF – Get Free Report) and Birchcliff Energy (OTCMKTS:BIREF – Get Free Report) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.
Profitability
This table compares Paramount Resources and Birchcliff Energy’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Paramount Resources | 111.48% | 6.89% | 5.31% |
Birchcliff Energy | 11.60% | 3.35% | 2.16% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for Paramount Resources and Birchcliff Energy, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Paramount Resources | 0 | 2 | 0 | 1 | 2.67 |
Birchcliff Energy | 0 | 0 | 2 | 7 | 3.78 |
Volatility and Risk
Institutional and Insider Ownership
4.1% of Paramount Resources shares are held by institutional investors. Comparatively, 0.8% of Birchcliff Energy shares are held by institutional investors. 36.3% of Paramount Resources shares are held by insiders. Comparatively, 1.5% of Birchcliff Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Paramount Resources and Birchcliff Energy”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Paramount Resources | $1.28 billion | 1.59 | $245.14 million | $7.01 | 2.02 |
Birchcliff Energy | $428.33 million | 2.77 | $40.94 million | $0.19 | 22.84 |
Paramount Resources has higher revenue and earnings than Birchcliff Energy. Paramount Resources is trading at a lower price-to-earnings ratio than Birchcliff Energy, indicating that it is currently the more affordable of the two stocks.
Dividends
Paramount Resources pays an annual dividend of $0.43 per share and has a dividend yield of 3.0%. Birchcliff Energy pays an annual dividend of $0.09 per share and has a dividend yield of 2.1%. Paramount Resources pays out 6.1% of its earnings in the form of a dividend. Birchcliff Energy pays out 47.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Paramount Resources is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Paramount Resources beats Birchcliff Energy on 11 of the 16 factors compared between the two stocks.
About Paramount Resources
Paramount Resources Ltd. explores for and develops conventional and unconventional petroleum and natural gas reserves and resources in Canada. The company holds interests in the Karr and Wapiti Montney properties covering an area of 109,000 net acres located south of the city of Grande Prairie, Alberta; Kaybob North Duvernay development and natural gas producing properties covering an area of 124,000 net acres located in west-central Alberta; and Willesden Green Duvernay development in central Alberta and shale gas producing properties in the Horn River Basin in northeast British Columbia covering an area of 249,000 net acres. The company was founded in 1976 and is based in Calgary, Canada.
About Birchcliff Energy
Birchcliff Energy Ltd., an intermediate oil and natural gas company, explores for, develops, and produces natural gas, light oil, condensate, and other natural gas liquids in Western Canada. The company holds interests in the areas of Montney/Doig Resource Play, including the Pouce Coupe and Gordondale properties in Alberta. Birchcliff Energy Ltd. was founded in 2004 and is headquartered in Calgary, Canada.
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