Critical Review: New Concept Energy (NYSE:GBR) versus Anadarko Petroleum (NASDAQ:APC)

New Concept Energy (NYSE:GBRGet Free Report) and Anadarko Petroleum (NASDAQ:APCGet Free Report) are both small-cap energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Profitability

This table compares New Concept Energy and Anadarko Petroleum’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New Concept Energy -25.85% -0.83% -0.82%
Anadarko Petroleum -4.20% 10.49% 2.68%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for New Concept Energy and Anadarko Petroleum, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Concept Energy 0 0 0 0 0.00
Anadarko Petroleum 0 2 3 1 2.83

Anadarko Petroleum has a consensus target price of $21.60, indicating a potential upside of 19.07%. Given Anadarko Petroleum’s stronger consensus rating and higher possible upside, analysts plainly believe Anadarko Petroleum is more favorable than New Concept Energy.

Earnings and Valuation

This table compares New Concept Energy and Anadarko Petroleum”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
New Concept Energy $155,000.00 25.16 -$20,000.00 ($0.02) -38.00
Anadarko Petroleum $5.58 billion 0.04 $615.00 million $0.23 78.87

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

Institutional & Insider Ownership

85.2% of Anadarko Petroleum shares are owned by institutional investors. 2.1% of New Concept Energy shares are owned by insiders. Comparatively, 0.5% of Anadarko Petroleum shares are owned 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.

Volatility & Risk

New Concept Energy has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Anadarko Petroleum has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500.

Summary

Anadarko Petroleum beats New Concept Energy on 13 of the 15 factors compared between the two stocks.

About New Concept Energy

(Get Free Report)

New Concept Energy, Inc. engages in real estate rental business. The company owns approximately 190 acres of land located in Parkersburg West Virginia. It also provides advisory and management services for an independent oil and gas company. The company was formerly known as CabelTel International Corporation and changed its name to New Concept Energy, Inc. in May 2008. New Concept Energy, Inc. is based in Dallas, Texas.

About Anadarko Petroleum

(Get Free Report)

Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of oil and gas properties. It operates through three segments: Exploration and Production, WES Midstream, and Other Midstream. The company explores for and produces oil, natural gas, and natural gas liquids (NGLs). It is also involved in gathering, processing, treating, and transporting oil, natural-gas, and NGLs production, as well as the gathering and disposal of produced water. The company's oil and natural gas properties are located in the United States onshore and deepwater Gulf of Mexico; and Algeria, Ghana, Mozambique, Colombia, Peru, and other countries. As of December 31, 2018, it had approximately 1.5 billion barrels of oil equivalent of proved reserves. The company was founded in 1959 and is headquartered in The Woodlands, Texas.

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