Financial Review: BP (NYSE:BP) vs. Antero Resources (NYSE:AR)

Antero Resources (NYSE:AR) and BP (NYSE:BP) are both large-cap energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.

Insider & Institutional Ownership

83.0% of Antero Resources shares are held by institutional investors. Comparatively, 11.0% of BP shares are held by institutional investors. 4.1% of Antero Resources shares are held by company insiders. Comparatively, 1.0% of BP shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Antero Resources and BP”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Antero Resources	$5.28 billion	1.99	$634.42 million	$3.48	9.79
BP	$192.55 billion	0.61	$55.00 million	$2.05	21.82

Antero Resources has higher earnings, but lower revenue than BP. Antero Resources is trading at a lower price-to-earnings ratio than BP, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Antero Resources and BP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Antero Resources	17.68%	9.02%	5.05%
BP	2.49%	16.63%	4.39%

Volatility & Risk

Antero Resources has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, BP has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Antero Resources and BP, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Antero Resources	0	6	12	4	2.91
BP	2	9	15	1	2.56

Antero Resources currently has a consensus target price of $49.00, suggesting a potential upside of 43.82%. BP has a consensus target price of $48.21, suggesting a potential upside of 7.77%. Given Antero Resources’ stronger consensus rating and higher probable upside, analysts plainly believe Antero Resources is more favorable than BP.

Summary

Antero Resources beats BP on 11 of the 15 factors compared between the two stocks.

About Antero Resources

Antero Resources Corporation, an independent oil and natural gas company, engages in the development, production, exploration, and acquisition of natural gas, natural gas liquids (NGLs), and oil properties in the United States. It operates in three segments: Exploration and Development; Marketing; and Equity Method Investment in Antero Midstream. As of December 31, 2023, the company had approximately 515,000 net acres in the Appalachian Basin; and approximately 172,000 net acres in the Upper Devonian Shale. Its gathering and compression systems also comprise 631 miles of gas gathering pipelines in the Appalachian Basin. The company was formerly known as Antero Resources Appalachian Corporation and changed its name to Antero Resources Corporation in June 2013. Antero Resources Corporation was incorporated in 2002 and is headquartered in Denver, Colorado.

About BP

BP p.l.c. provides carbon products and services. The company operates through Gas & Low Carbon Energy, Oil Production & Operations, and Customers & Products segments. It engages in the production of natural gas, and integrated gas and power; trading of gas; operation of onshore and offshore wind power, as well as hydrogen and carbon capture and storage facilities; trading and marketing of renewable and non-renewable power; and production of crude oil. In addition, the company involved in convenience and retail fuel, EV charging, Castrol lubricant, aviation, B2B, and midstream businesses; refining and oil trading; and bioenergy business. The company was founded in 1908 and is headquartered in London, the United Kingdom.