Critical Comparison: Antero Resources (NYSE:AR) versus Erin Energy (OTCMKTS:ERINQ)

Antero Resources (NYSE:AR) and Erin Energy (OTCMKTS:ERINQ) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Institutional and Insider Ownership

83.0% of Antero Resources shares are owned by institutional investors. 6.3% of Antero Resources shares are owned by company insiders. Comparatively, 62.5% of Erin Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Antero Resources and Erin Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Antero Resources	12.02%	6.71%	3.89%
Erin Energy	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings for Antero Resources and Erin Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Antero Resources	0	7	7	4	2.83
Erin Energy	0	0	0	0	0.00

Antero Resources presently has a consensus target price of $45.93, indicating a potential upside of 32.25%. Given Antero Resources’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Antero Resources is more favorable than Erin Energy.

Volatility & Risk

Antero Resources has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Erin Energy has a beta of -8.9, suggesting that its stock price is 990% less volatile than the S&P 500.

Earnings and Valuation

This table compares Antero Resources and Erin Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Antero Resources	$5.28 billion	2.03	$634.42 million	$2.02	17.19
Erin Energy	N/A	N/A	N/A	N/A	N/A

Antero Resources has higher revenue and earnings than Erin Energy.

Summary

Antero Resources beats Erin Energy on 10 of the 11 factors compared between the two stocks.

About Antero Resources

Antero Resources Corporation, an independent oil and natural gas company, engages in the development, production, exploration, and acquisition of natural gas, natural gas liquids (NGLs), and oil properties in the United States. It operates in three segments: Exploration and Development; Marketing; and Equity Method Investment in Antero Midstream. As of December 31, 2023, the company had approximately 515,000 net acres in the Appalachian Basin; and approximately 172,000 net acres in the Upper Devonian Shale. Its gathering and compression systems also comprise 631 miles of gas gathering pipelines in the Appalachian Basin. The company was formerly known as Antero Resources Appalachian Corporation and changed its name to Antero Resources Corporation in June 2013. Antero Resources Corporation was incorporated in 2002 and is headquartered in Denver, Colorado.

About Erin Energy

Erin Energy Corporation, an independent exploration and production company, engages in the acquisition and development of energy resources in Africa. Its asset portfolio consists of five licenses covering an area of approximately 6,000 square kilometers across offshore Nigeria, offshore Ghana, and offshore The Gambia. The company was formerly known as CAMAC Energy Inc. and changed its name to Erin Energy Corporation in April 2015. The company was founded in 2005 and is headquartered in Houston, Texas. Erin Energy Corporation is a subsidiary of CAMAC Energy Holdings Limited. On July 13, 2018, the voluntary petition of Erin Energy Corporation for reorganization under Chapter 11 was converted to Chapter 7. It had filed for Chapter 11 bankruptcy on April 25, 2018.