Amplify Energy (NYSE:AMPY – Get Free Report) and Kosmos Energy (NYSE:KOS – Get Free Report) are both small-cap energy companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.
Analyst Ratings
This is a summary of current ratings and price targets for Amplify Energy and Kosmos Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Amplify Energy | 1 | 0 | 1 | 0 | 2.00 |
| Kosmos Energy | 4 | 4 | 1 | 0 | 1.67 |
Amplify Energy currently has a consensus target price of $9.00, suggesting a potential upside of 169.87%. Kosmos Energy has a consensus target price of $2.37, suggesting a potential upside of 12.39%. Given Amplify Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Amplify Energy is more favorable than Kosmos Energy.
Valuation and Earnings
This table compares Amplify Energy and Kosmos Energy”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Amplify Energy | $263.36 million | 0.53 | $43.97 million | $0.45 | 7.41 |
| Kosmos Energy | $1.29 billion | 0.97 | -$699.79 million | ($1.00) | -2.11 |
Amplify Energy has higher earnings, but lower revenue than Kosmos Energy. Kosmos Energy is trading at a lower price-to-earnings ratio than Amplify Energy, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
42.8% of Amplify Energy shares are owned by institutional investors. Comparatively, 95.3% of Kosmos Energy shares are owned by institutional investors. 9.0% of Amplify Energy shares are owned by insiders. Comparatively, 1.9% of Kosmos Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Amplify Energy and Kosmos Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Amplify Energy | 10.62% | -3.01% | -2.07% |
| Kosmos Energy | -27.21% | -1.73% | -0.22% |
Risk & Volatility
Amplify Energy has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500. Comparatively, Kosmos Energy has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500.
Summary
Amplify Energy beats Kosmos Energy on 7 of the 13 factors compared between the two stocks.
About Amplify Energy
Amplify Energy Corp., together with its subsidiaries, engages in the acquisition, development, exploitation, and production of oil and natural gas properties in the United States. The company’s properties consist of operated and non-operated working interests in producing and undeveloped leasehold acreage, as well as working interests in identified producing wells located in Oklahoma, the Rockies, federal waters offshore Southern California, East Texas/North Louisiana, and Eagle Ford. The company is based in Houston, Texas.
About Kosmos Energy
Kosmos Energy Ltd., together with its subsidiaries, engages in the exploration, development, and production of oil and gas along the Atlantic Margins in the United States. The company’s primary assets include production projects located in offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico, as well as gas projects located in offshore Mauritania and Senegal. It undertakes a proven basin exploration program in Equatorial Guinea and the U.S. Gulf of Mexico. Kosmos Energy Ltd. was founded in 2003 and is headquartered in Dallas, Texas.
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