SandRidge Energy (NYSE:SD – Get Free Report) and Freehold Royalties (OTCMKTS:FRHLF – Get Free Report) are both small-cap energy companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, analyst recommendations and profitability.
Dividends
SandRidge Energy pays an annual dividend of $0.52 per share and has a dividend yield of 3.8%. Freehold Royalties pays an annual dividend of $0.78 per share and has a dividend yield of 6.6%. SandRidge Energy pays out 23.2% of its earnings in the form of a dividend. Freehold Royalties pays out 127.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SandRidge Energy has increased its dividend for 2 consecutive years.
Insider and Institutional Ownership
61.8% of SandRidge Energy shares are held by institutional investors. 1.6% of SandRidge Energy shares are held 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 Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SandRidge Energy | 0 | 3 | 0 | 0 | 2.00 |
| Freehold Royalties | 0 | 5 | 0 | 0 | 2.00 |
Profitability
This table compares SandRidge Energy and Freehold Royalties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SandRidge Energy | 46.06% | 13.62% | 10.93% |
| Freehold Royalties | 43.59% | 13.90% | 10.09% |
Earnings & Valuation
This table compares SandRidge Energy and Freehold Royalties”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SandRidge Energy | $156.36 million | 3.29 | $70.20 million | $2.24 | 6.19 |
| Freehold Royalties | $224.34 million | 8.68 | $65.69 million | $0.61 | 19.47 |
SandRidge Energy has higher earnings, but lower revenue than Freehold Royalties. SandRidge Energy is trading at a lower price-to-earnings ratio than Freehold Royalties, indicating that it is currently the more affordable of the two stocks.
Summary
SandRidge Energy beats Freehold Royalties on 8 of the 13 factors compared between 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 Freehold Royalties
Freehold Royalties Ltd. engages in the acquiring and managing royalty interests in the crude oil, natural gas, natural gas liquids, and potash properties in Western Canada and the United States. Freehold Royalties Ltd. was founded in 1996 and is headquartered in Calgary, Canada.
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