SandRidge Energy (NYSE:SD) and Prairie Operating (NASDAQ:PROP) Critical Analysis

SandRidge Energy (NYSE:SD) and Prairie Operating (NASDAQ:PROP) are both small-cap energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SandRidge Energy	51.77%	10.05%	7.96%
Prairie Operating	13.40%	68.36%	7.08%

Risk & Volatility

SandRidge Energy has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Prairie Operating has a beta of 2.07, suggesting that its stock price is 107% more volatile than the S&P 500.

Institutional & Insider Ownership

61.8% of SandRidge Energy shares are owned by institutional investors. Comparatively, 34.3% of Prairie Operating shares are owned by institutional investors. 1.5% of SandRidge Energy shares are owned by insiders. Comparatively, 15.4% of Prairie Operating shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for SandRidge Energy and Prairie Operating, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SandRidge Energy	0	1	0	0	2.00
Prairie Operating	1	2	3	0	2.33

Prairie Operating has a consensus target price of $6.75, suggesting a potential upside of 263.10%. Given Prairie Operating’s stronger consensus rating and higher probable upside, analysts clearly believe Prairie Operating is more favorable than SandRidge Energy.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SandRidge Energy	$155.93 million	3.33	$62.99 million	$1.78	7.94
Prairie Operating	$7.94 million	13.97	-$40.91 million	($3.24)	-0.57

SandRidge Energy has higher revenue and earnings than Prairie Operating. Prairie Operating is trading at a lower price-to-earnings ratio than SandRidge Energy, indicating that it is currently the more affordable of the two stocks.

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.

About Prairie Operating

Prairie Operating Co., an independent energy company, engages in the development, exploration, and production of oil, natural gas, and natural gas liquids in the United States. The company holds assets in the Denver-Julesburg Basin in Colorado; and the Niobrara and Codell formations. Prairie Operating Co. is based in Houston Texas.