Critical Contrast: Sable Offshore (NYSE:SOC) & SandRidge Energy (NYSE:SD)

Sable Offshore (NYSE:SOC) and SandRidge Energy (NYSE:SD) are both small-cap energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Sable Offshore and SandRidge Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sable Offshore	2	0	6	0	2.50
SandRidge Energy	0	1	0	0	2.00

Sable Offshore presently has a consensus target price of $30.00, indicating a potential upside of 56.69%. Given Sable Offshore’s stronger consensus rating and higher probable upside, equities analysts plainly believe Sable Offshore is more favorable than SandRidge Energy.

Valuation & Earnings

This table compares Sable Offshore and SandRidge Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sable Offshore	N/A	N/A	-$629.07 million	N/A	N/A
SandRidge Energy	$125.29 million	3.49	$62.99 million	$2.04	5.83

SandRidge Energy has higher revenue and earnings than Sable Offshore.

Risk and Volatility

Sable Offshore has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, SandRidge Energy has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.

Insider and Institutional Ownership

26.2% of Sable Offshore shares are held by institutional investors. Comparatively, 61.8% of SandRidge Energy shares are held by institutional investors. 36.4% of Sable Offshore shares are held by company insiders. Comparatively, 1.5% of SandRidge Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Sable Offshore and SandRidge Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sable Offshore	N/A	-88.48%	-17.69%
SandRidge Energy	51.77%	10.05%	7.96%

Summary

SandRidge Energy beats Sable Offshore on 7 of the 11 factors compared between the two stocks.

About Sable Offshore

Sable Offshore Corp. engages in the oil and gas exploration and development activities in the United States. The company operates through three platforms located in federal waters offshore California. It owns and operates 16 federal leases across approximately 76,000 acres and subsea pipelines, which transport crude oil, natural gas, and produced water from the platforms to the onshore processing facilities. The company was formerly known as Flame Acquisition Corp. and changed its name to Sable Offshore Corp. in February 2024. Sable Offshore Corp. was incorporated in 2020 and is based in Houston, Texas.

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.