Comparing APA (NASDAQ:APA) & Topaz Resources (OTCMKTS:TOPZ)

Topaz Resources (OTCMKTS:TOPZ) and APA (NASDAQ:APA) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.

Institutional and Insider Ownership

83.0% of APA shares are held by institutional investors. 0.7% of APA shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Topaz Resources and APA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Topaz Resources	N/A	N/A	N/A
APA	10.53%	20.98%	7.21%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Topaz Resources and APA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Topaz Resources	0	0	0	0	0.00
APA	3	16	5	0	2.08

APA has a consensus target price of $25.90, indicating a potential upside of 3.23%. Given APA’s stronger consensus rating and higher probable upside, analysts plainly believe APA is more favorable than Topaz Resources.

Earnings & Valuation

This table compares Topaz Resources and APA”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Topaz Resources	N/A	N/A	N/A	N/A	N/A
APA	$9.64 billion	0.92	$804.00 million	$4.16	6.03

APA has higher revenue and earnings than Topaz Resources.

Risk & Volatility

Topaz Resources has a beta of 9.5, meaning that its stock price is 850% more volatile than the S&P 500. Comparatively, APA has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.

Summary

APA beats Topaz Resources on 9 of the 10 factors compared between the two stocks.

About Topaz Resources

Topaz Resources, Inc. operates as an independent oil and gas company. It focuses on production, acquisition, and developmental drilling opportunities within proven producing areas of north, central, and west Texas. The company was formerly known as Kids Germ Defense Corp. and changed its name to Topaz Resources, Inc. in April 2010. Topaz Resources, Inc. was founded in 2009 and is headquartered in Denton, Texas.

About APA

APA Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids. It has oil and gas operations in the United States, Egypt, and North Sea. The company also has exploration and appraisal activities in Suriname, as well as holds interests in projects located in Uruguay and internationally. APA Corporation was incorporated in 1954 and is headquartered in Houston, Texas.