Reviewing Legacy Reserves (OTCMKTS:LGCYQ) and Greenfire Resources (NYSE:GFR)

Greenfire Resources (NYSE:GFR) and Legacy Reserves (OTCMKTS:LGCYQ) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Valuation and Earnings

This table compares Greenfire Resources and Legacy Reserves”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Greenfire Resources	$822.97 million	0.35	-$100.50 million	$1.85	2.25
Legacy Reserves	N/A	N/A	N/A	N/A	N/A

Legacy Reserves has lower revenue, but higher earnings than Greenfire Resources.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Greenfire Resources and Legacy Reserves, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Greenfire Resources	0	0	1	0	3.00
Legacy Reserves	0	0	0	0	0.00

Greenfire Resources presently has a consensus target price of $10.50, indicating a potential upside of 152.40%. Given Greenfire Resources’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Greenfire Resources is more favorable than Legacy Reserves.

Profitability

This table compares Greenfire Resources and Legacy Reserves’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Greenfire Resources	5.02%	5.40%	3.13%
Legacy Reserves	N/A	N/A	N/A

Insider & Institutional Ownership

88.9% of Greenfire Resources shares are held by institutional investors. 20.0% of Greenfire Resources shares are held by company insiders. Comparatively, 0.8% of Legacy Reserves shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Greenfire Resources beats Legacy Reserves on 9 of the 9 factors compared between the two stocks.

About Greenfire Resources

Greenfire Resources Ltd., together with its subsidiaries, engages in the development, exploration, and operation of oil and gas properties in the Athabasca oil sands region of Alberta. The company operates the Tier-1 oil sands assets located in Western Canada. It utilizes steam-assisted gravity drainage (SAGD) extraction technology, a situ thermal oil recovery process to recover diluted and non- diluted bitumen. The company is headquartered in Calgary, Canada.

About Legacy Reserves

Legacy Reserves Inc., an independent energy company, engages in the acquisition, development, and production of oil and natural gas properties in the United States. It focuses on the horizontal development of unconventional plays in the Permian Basin and the management of shallow-decline oil and natural gas wells in the regions of Permian Basin, East Texas, Rocky Mountain, and Mid-Continent. As of December 31, 2018, the company had proved reserves of approximately 164.9 million barrels of crude oil equivalent covering natural gas, as well as oil and natural gas liquids. Legacy Reserves Inc. was founded in 2005 and is based in Midland, Texas. On June 18, 2019, Legacy Reserves Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.