Tourmaline Oil (OTCMKTS:TRMLF) and SandRidge Energy (NYSE:SD) Head to Head Comparison

SandRidge Energy (NYSE:SD) and Tourmaline Oil (OTCMKTS:TRMLF) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for SandRidge Energy and Tourmaline Oil, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SandRidge Energy	0	2	0	0	2.00
Tourmaline Oil	0	6	4	1	2.55

Tourmaline Oil has a consensus price target of $65.00, indicating a potential upside of 43.27%. Given Tourmaline Oil’s stronger consensus rating and higher probable upside, analysts clearly believe Tourmaline Oil is more favorable than SandRidge Energy.

Dividends

SandRidge Energy pays an annual dividend of $0.52 per share and has a dividend yield of 3.6%. Tourmaline Oil pays an annual dividend of $1.45 per share and has a dividend yield of 3.2%. SandRidge Energy pays out 23.2% of its earnings in the form of a dividend. Tourmaline Oil pays out 201.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SandRidge Energy has raised its dividend for 2 consecutive years. SandRidge Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares SandRidge Energy and Tourmaline Oil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SandRidge Energy	46.06%	13.62%	10.93%
Tourmaline Oil	6.05%	9.05%	6.25%

Risk and Volatility

SandRidge Energy has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, Tourmaline Oil has a beta of -0.24, indicating that its stock price is 124% less volatile than the S&P 500.

Insider and Institutional Ownership

61.8% of SandRidge Energy shares are held by institutional investors. Comparatively, 1.8% of Tourmaline Oil shares are held by institutional investors. 1.6% of SandRidge Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares SandRidge Energy and Tourmaline Oil”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SandRidge Energy	$156.36 million	3.39	$70.20 million	$2.24	6.39
Tourmaline Oil	$4.72 billion	3.74	$187.99 million	$0.72	63.01

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

Summary

SandRidge Energy beats Tourmaline Oil on 10 of the 18 factors compared between the two stocks.

About SandRidge Energy

SandRidge Energy, Inc. engages in the acquisition, development, and production of oil, natural gas, and natural gas liquids in the United States Mid-Continent. The company was incorporated in 2006 and is headquartered in Oklahoma City, Oklahoma.

About Tourmaline Oil

Tourmaline Oil Corp. explores for and develops oil and natural gas properties in the Western Canadian Sedimentary Basin. The company holds interests in properties located in the Alberta Deep Basin, Northeast British Columbia Montney, and the Peace River High Triassic oil complex. Tourmaline Oil Corp. was incorporated in 2008 and is headquartered in Calgary, Canada.