Atlas Resource Partners (ARPJQ) vs. Bonanza Creek Energy (BCEI) Critical Analysis

Atlas Resource Partners (OTCMKTS: ARPJQ) and Bonanza Creek Energy (NYSE:BCEI) are both small-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.

Risk & Volatility

Atlas Resource Partners has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, Bonanza Creek Energy has a beta of 1.99, indicating that its stock price is 99% more volatile than the S&P 500.

Dividends

Atlas Resource Partners pays an annual dividend of $0.50 per share and has a dividend yield of 6,849.3%. Bonanza Creek Energy does not pay a dividend. Atlas Resource Partners pays out -5.1% of its earnings in the form of a dividend.

Profitability

This table compares Atlas Resource Partners and Bonanza Creek Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atlas Resource Partners N/A N/A -35.27%
Bonanza Creek Energy -33.79% -3.17% -1.09%

Valuation & Earnings

This table compares Atlas Resource Partners and Bonanza Creek Energy’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atlas Resource Partners N/A N/A N/A ($9.81) 0.00
Bonanza Creek Energy $195.29 million 3.13 -$198.95 million ($153.96) -0.19

Atlas Resource Partners has higher earnings, but lower revenue than Bonanza Creek Energy. Bonanza Creek Energy is trading at a lower price-to-earnings ratio than Atlas Resource Partners, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

91.3% of Bonanza Creek Energy shares are held by institutional investors. 0.6% of Bonanza Creek Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and target prices for Atlas Resource Partners and Bonanza Creek Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlas Resource Partners 0 0 0 0 N/A
Bonanza Creek Energy 0 3 0 0 2.00

Bonanza Creek Energy has a consensus target price of $25.00, suggesting a potential downside of 16.44%. Given Bonanza Creek Energy’s higher possible upside, analysts clearly believe Bonanza Creek Energy is more favorable than Atlas Resource Partners.

Summary

Bonanza Creek Energy beats Atlas Resource Partners on 6 of the 11 factors compared between the two stocks.

Atlas Resource Partners Company Profile

Atlas Resource Partners, L.P. is an independent developer and producer of natural gas, crude oil and natural gas liquids (NGL), with operations in basins across the United States. The Company is a sponsor and manager of tax-advantaged investment partnerships (drilling partnerships), in which it co-invests, to finance a portion of its natural gas, crude oil and natural gas liquids production activities. The Company operates through three segments: gas and oil production, well construction and completion, and other partnership management. Its production positions are in the areas, including Barnett Shale/Marble Falls, Appalachian Basin, Coal-Bed Methane, Rangely, Eagle Ford, Mississippi Lime/Hunton and Chattanooga Shale. The Barnett Shale and Marble Falls play are located east of the Bend Arch and west of the Quachita Thrust in the Fort Worth Basin of northern Texas. It has various coal-bed methane developments across coal-bed methane producing areas.

Bonanza Creek Energy Company Profile

Bonanza Creek Energy, Inc. (Bonanza Creek) is an independent energy company engaged in the acquisition, exploration, development and production of onshore oil and associated liquids-rich natural gas in the United States. The Company’s oil and liquids-weighted assets are concentrated primarily in the Wattenberg Field in Colorado and the Dorcheat Macedonia Field in southern Arkansas. In addition, the Company owns and operates oil-producing assets in the North Park Basin in Colorado and the McKamie Patton Field in southern Arkansas. The main areas in which the Company operates in the Rocky Mountain region are the Wattenberg Field in Weld County, Colorado and the North Park Basin in Jackson County, Colorado. Its Wattenberg Field operations are in the oil and liquids-weighted extension area of the Wattenberg Field targeting the Niobrara and Codell formations. In southern Arkansas, it targets the oil-rich Cotton Valley sands in the Dorcheat Macedonia and McKamie Patton Fields.

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